2015 Annual Global Corporate Default Study and Rating Transitions PDF

Default, Transition, and Recovery:
2015 Annual Global Corporate Default

Study And Rating Transitions
Global Fixed Income Research:
Diane Vazza, Managing Director, New York (1) 212-438-2760; diane.vazza@spglobal.com
Nick W Kraemer, FRM, Senior Director, New York (1) 212-438-1698; nick.kraemer@spglobal.com
Table Of Contents
2015 Summary
Annual Global Trends
2015 Timeline: Global Tremors Push The Default Total Past 100
Quarterly Trends
Lower Ratings Are Consistent With Higher Default Vulnerability
Industry Variations
Speculative-Grade Ratings Now Dominate
Transition Tables And Cumulative Default Rates
Gini Ratios And Lorenz Curves
Appendix I: Methodology And Definitions
Appendix II: Gini Methodology
Appendix III: Defaults In Profile
Related Research
WWW.STANDARDANDPOORS.COM/RATINGSDIRECT MAY 2, 2016 1

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Default, Transition, and Recovery:
2015 Annual Global Corporate Default Study And
Rating Transitions
In 2015, oil prices continued to slide, volatility in emerging market financial sectors picked up, and the Federal Reserve
raised the interest rate for the first time in almost 10 years. In particular, the stress felt in the commodities sectors
pushed the corporate default count for 2015 up to 113--the first time an annual total has exceeded 100 since 2009 (see
table 1). These 113 defaulted issuers accounted for a total of $110.3 billion in debt, up from $91.6 billion in 2014,
though a proportionately much smaller amount on average considering the number of defaults.
At the end of December 2015, the global speculative-grade default rate rose to 2.75%--its highest level since 2010
(when it was 3%) but still well below the 35-year annual average of 4.1% (see chart 7). This increase was mostly the
result of the much higher pace of defaults among energy and commodities sectors. At the end of 2015, the global
speculative-grade default rate, excluding energy and natural resources, was a much more modest 1.85%. Meanwhile,
the rate for the energy and natural resources sector was just under 10% by year-end.
Overview
• In full-year 2015, the number of defaults globally nearly doubled from a year earlier, to 113 from 60 in 2014.
This pushed the global speculative-grade default rate up to 2.75% from 1.43% at the end of 2014. This increase
occurred alongside an 8.6% bump in the number of speculative-grade issuers at the start of the year relative to
2014.
• The continued decline in oil and other commodity prices in 2015 was one of the biggest factors behind the
overall increase in defaults for the year. The energy and natural resources sector accounted for 39% of all
defaults in 2015, well outpacing the consumer/service sector, which followed at roughly 16%.
• The one-year global Gini ratio fell to 83.5 in 2015, which is the lowest reading since 2009, when the
speculative-grade default rate reached nearly 10%. This decline is partly driven by two defaulters that began
the year with ratings in the 'BB' category. Also, not since 2009 has the 'CCC'/'C' category accounted for such a
low proportion of all defaulters (46.8% of the total in 2015).
• The overall rate of rating actions increased in 2015 relative to 2014 but was very consistent with long-term
averages. The downgrade rate increased to 11.8% from 8.5% in 2014, while the upgrade rate declined to 7.4%
from 9.2%. Ratings stability decreased, with the rate of unchanged ratings falling slightly to 71.1%, from 74.5%
a year earlier.
• Consistent with past years, the U.S. continues to account for the majority of defaults globally in 2015, at 58.4%.
This is slightly higher than the 55% of last year's defaulters but is still historically low. Following the U.S.,
emerging markets accounted for just over 23% of the remaining defaulters.
Despite the increase in defaults, overall, credit quality and rating stability measures remained in line with most
historical averages (see table 6). The ratio of downgrades to upgrades increased relative to 2014 on the back of an
increase in downgrades and fewer upgrades. Overall, the percentage of rating actions increased somewhat, and the
magnitude of individual rating changes also rose. This was reflected in the average number of notches recorded among

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Default, Transition, and Recovery: 2015 Annual Global Corporate Default Study And Rating Transitions
downgrades, which increased to 1.47 from 1.36. The average number of notches for upgrades increased slightly, to
1.18 versus 1.16 in 2014 (see chart 13).
All of the defaulted companies in 2015 that began the year with active ratings (94) were speculative grade (rated 'BB+'
and lower) as of Jan. 1 (see table 1). Of the remaining 19, S&P Global Ratings assigned ratings on eight companies
during 2015, and 11 began the year with withdrawn ratings. Also, of the 113 defaulters, 105 initially had
speculative-grade ratings--the majority (92) from the 'B' and 'CCC'/'C' rating categories. We consider companies
reemerging from a prior default separate entities from their experience prior to default.
This study includes industrials, utilities, financial institutions (which includes banks, brokerages, asset managers, and
other financial entities), and insurance companies around the world with long-term local-currency ratings. We
calculated all default rates reported on an issuer-weighted basis. (For a detailed explanation of the data sources and
methodology used in the study, see Appendix I.)
Consistent with an increasing number of defaults in 2015 from the prior year, the one-year Gini ratio--a key measure of
the relative ability of ratings to differentiate risk--fell to 83.5 in 2015 from 93 in 2014. This is the lowest annual Gini
ratio in the last six years (see chart 30). The 2015 Gini is slightly lower than the one-year average of 84.8% (see table
2). (For details on the Gini methodology, refer to Appendix II.) A lot of the default activity in 2015 occurred within
energy and natural resources--unsurprising given the continued decline in oil prices and other commodities that began
in late 2014. Meanwhile, most other sectors had default rates close to their long-term averages, or ones that were well
below those levels (see chart 2). The default rates in this study that we refer to as weighted averages use the number of
issuers at the beginning of each year as the basis for each year's weight. Every rating category had an annual default
rate in 2015 that was generally significantly lower than its long-term average (see table 9).
Table 1
Global Corporate Default Summary
Total debt
Total Investment-grade Speculative-grade Default Investment-grade Speculative-grade outstanding
Year defaults* defaults defaults rate (%) default rate (%) default rate (%) (bil. $)
1981 2 0 2 0.14 0.00 0.62 0.06
1982 18 2 15 1.19 0.18 4.41 0.90
1983 12 1 10 0.76 0.09 2.94 0.37
1984 14 2 12 0.91 0.17 3.27 0.36
1985 19 0 18 1.11 0.00 4.32 0.31
1986 34 2 30 1.72 0.15 5.67 0.46
1987 19 0 19 0.94 0.00 2.79 1.60
1988 32 0 29 1.38 0.00 3.85 3.30
1989 44 3 35 1.77 0.22 4.67 7.28
1990 70 2 56 2.73 0.14 8.12 21.15
1991 93 2 65 3.25 0.14 11.05 23.65
1992 39 0 32 1.49 0.00 6.10 5.40
1993 26 0 14 0.60 0.00 2.50 2.38
1994 21 1 15 0.63 0.05 2.11 2.30
1995 35 1 29 1.05 0.05 3.53 8.97

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Table 1
Global Corporate Default Summary (cont.)
Total debt
Total Investment-grade Speculative-grade Default Investment-grade Speculative-grade outstanding
Year defaults* defaults defaults rate (%) default rate (%) default rate (%) (bil. $)
1996 20 0 16 0.51 0.00 1.81 2.65
1997 23 2 20 0.63 0.08 2.01 4.93
1998 56 4 48 1.28 0.14 3.66 11.27
1999 109 5 92 2.14 0.17 5.56 39.38
2000 136 7 109 2.48 0.24 6.22 43.28
2001 229 7 173 3.78 0.23 9.86 118.79
2002 226 13 159 3.60 0.42 9.48 190.92
2003 119 3 89 1.92 0.10 5.05 62.89
2004 56 1 38 0.78 0.03 2.02 20.66
2005 40 1 31 0.60 0.03 1.50 42.00
2006 30 0 26 0.48 0.00 1.18 7.13
2007 24 0 21 0.37 0.00 0.91 8.15
2008 127 14 89 1.80 0.42 3.69 429.63
2009 268 11 224 4.18 0.33 9.88 627.70
2010 83 0 64 1.21 0.00 2.99 97.48
2011 53 1 44 0.80 0.03 1.83 84.30
2012 83 0 66 1.14 0.00 2.57 86.70
2013 81 0 64 1.06 0.00 2.29 97.29
2014 60 0 45 0.69 0.00 1.43 91.55
2015 113 0 94 1.36 0.00 2.75 110.31
*This column includes companies that were no longer rated one year prior to default. Sources: Standard & Poor's Global Fixed Income Research
and Standard & Poor's Credit Pro®.

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Chart 1

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Chart 2
The Gini ratios are a measure of the rank-ordering power of ratings over a given time horizon--one through seven
years (see chart 3). It shows the ratio of actual rank-ordering performance to theoretically perfect rank ordering.

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Chart 3
All of S&P Global Fixed Income Research's default studies have found a clear correlation between ratings and defaults:
The higher the rating, the lower the observed frequency of default, and vice versa. Over each time span, lower ratings
correspond to higher default rates (see chart 4 and chart 25). We found that the same is true when we broke out the
data by rating (see table 24 and table 26), as well as by region (see table 25). As the Gini ratios show, the ability of
corporate ratings to serve as an effective measure of relative risk remains intact, particularly in low-default years.
Many default studies, including this one, also look at transition rates, which gauge the degree to which ratings
change--either up or down--over a particular time. Transition studies have repeatedly confirmed that higher ratings
tend to be more stable and that speculative-grade ratings generally experience more volatility. However, since the
financial downturn of 2008 onward, many highly rated companies have been downgraded, leaving, for example, very
few 'AAA' rated issuers at the start of 2015. As such, rating categories with smaller populations will experience high
rating transition rates when even a small number of issuers experience upgrades or downgrades.

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Table 2
Global Average Gini Coefficients By Broad Sector (1981-2015)
--Time horizon--
Sector One-year Three-year Five-year Seven-year
Global
Weighted average 82.02 75.30 71.79 69.57
Average 84.82 78.28 73.88 70.36
Standard deviation (5.53) (5.27) (5.63) (5.14)
Financial
Average 80.90 73.83 64.96 58.20
Nonfinancial
Average 84.16 77.15 73.11 69.83
Note: Numbers in parentheses are standard deviations. Sources: Standard & Poor’s Global Fixed Income Research and Standard & Poor’s
CreditPro®.
Chart 4

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All but two of the rated defaulters in 2015 began the year among the lowest rating categories--'B' and 'CCC'/'C' (see
table 3). The 'CCC'/'C' category accounted for a plurality of defaulters with active ratings at the beginning of 2015
(47%), but the 'B' and 'BB' categories accounted for larger proportions of the pool of defaulters than in very recent
years (see table 4). The 'B' rating category's default rate was 2.4%, which is the highest level since 2009, while the 'BB'
category recorded a 0.16% default rate, after not producing a default in 2014. Once again, the default rate in the 'AAA'
rating category was zero, which maintains the unblemished default record for corporate ratings in this category and is
consistent with historical trends. Finally, for the fourth year in a row, there were no investment-grade-rated defaults.
Table 3
Global Corporate Annual Default Rates By Rating Category (%)
AAA AA A BBB BB B CCC/C
1981 0.00 0.00 0.00 0.00 0.00 2.27 0.00
1982 0.00 0.00 0.21 0.34 4.22 3.13 21.43
1983 0.00 0.00 0.00 0.32 1.16 4.58 6.67
1984 0.00 0.00 0.00 0.66 1.14 3.41 25.00
1985 0.00 0.00 0.00 0.00 1.48 6.47 15.38
1986 0.00 0.00 0.18 0.33 1.31 8.36 23.08
1987 0.00 0.00 0.00 0.00 0.38 3.08 12.28
1988 0.00 0.00 0.00 0.00 1.05 3.63 20.37
1989 0.00 0.00 0.18 0.60 0.72 3.38 33.33
1990 0.00 0.00 0.00 0.58 3.57 8.56 31.25
1991 0.00 0.00 0.00 0.55 1.69 13.84 33.87
1992 0.00 0.00 0.00 0.00 0.00 6.99 30.19
1993 0.00 0.00 0.00 0.00 0.70 2.62 13.33
1994 0.00 0.00 0.14 0.00 0.28 3.08 16.67
1995 0.00 0.00 0.00 0.17 0.99 4.58 28.00
1996 0.00 0.00 0.00 0.00 0.45 2.91 8.00
1997 0.00 0.00 0.00 0.25 0.19 3.51 12.00
1998 0.00 0.00 0.00 0.41 0.82 4.63 42.86
1999 0.00 0.17 0.18 0.20 0.95 7.29 33.33
2000 0.00 0.00 0.27 0.37 1.15 7.70 35.96
2001 0.00 0.00 0.27 0.34 2.96 11.53 45.45
2002 0.00 0.00 0.00 1.01 2.88 8.21 44.44
2003 0.00 0.00 0.00 0.23 0.58 4.07 32.73
2004 0.00 0.00 0.08 0.00 0.44 1.45 16.18
2005 0.00 0.00 0.00 0.07 0.31 1.74 9.09
2006 0.00 0.00 0.00 0.00 0.30 0.82 13.33
2007 0.00 0.00 0.00 0.00 0.20 0.25 15.24
2008 0.00 0.38 0.39 0.49 0.81 4.08 27.27
2009 0.00 0.00 0.22 0.55 0.75 10.91 49.46
2010 0.00 0.00 0.00 0.00 0.58 0.85 22.73
2011 0.00 0.00 0.00 0.07 0.00 1.66 16.42
2012 0.00 0.00 0.00 0.00 0.30 1.56 27.33
2013 0.00 0.00 0.00 0.00 0.10 1.63 24.34

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Table 3
Global Corporate Annual Default Rates By Rating Category (%) (cont.)
2014 0.00 0.00 0.00 0.00 0.00 0.77 17.03
2015 0.00 0.00 0.00 0.00 0.16 2.39 25.73
Sources: Standard & Poor's Global Fixed Income Research and Standard & Poor's CreditPro®.
Table 4
Descriptive Statistics On One-Year Global Default Rates (%)
Minimum 0.00 0.00 0.00 0.00 0.00 0.25 0.00
Maximum 0.00 0.38 0.39 1.01 4.22 13.84 49.46
Weighted long-term average 0.00 0.02 0.06 0.19 0.73 3.77 26.36
Median 0.00 0.00 0.00 0.07 0.70 3.41 23.08
Standard deviation 0.00 0.07 0.11 0.26 1.02 3.33 11.83
2008 default rates 0.00 0.38 0.39 0.49 0.81 4.08 27.27
Latest four quarters (Q1 2015-Q4 2015) 0.00 0.00 0.00 0.00 0.16 2.39 25.73
Difference between last four quarters and weighted average 0.00 (0.02) (0.06) (0.19) (0.57) (1.38) (0.63)
Number of standard deviations 0.00 (0.30) (0.60) (0.73) (0.56) (0.41) (0.05)
Sources: Standard & Poor’s Global Fixed Income Research and Standard & Poor's CreditPro®.
2015 Summary
Below are some of our key findings for 2015:
• By count, the U.S. and associated tax havens (Bermuda and the Cayman Islands) accounted for 66 of defaults in
2015, emerging markets had 26 defaults, Europe produced 16, and the other developed nations had the fewest, at
five.
• Distressed exchanges accounted for the largest share of defaults in 2015 (34.5%), with missed interest and/or
principal payments coming in close behind at 33.6%. Chapter 7, Chapter 11, and Chapter 15 filings together
accounted for another 19.5%.
• As of Dec. 31, 2015, 12-month-trailing speculative-grade default rates had risen across most regions from a year
earlier. The global speculative-grade default rate was 2.8% at the end of 2015, from 2.3% in 2014. By region, default
rates were 2.83% in the U.S., 2.1% in Europe, and 3.1% in the emerging markets (see table 7). Meanwhile the default
rate for other developed nations held steady at 2.8%.
• All of the 94 defaulters that we rated at the beginning of the year had speculative-grade ratings ('BB+' or lower) at
that time. The remainder of the 2015 defaulters began the year without active ratings or were first assigned ratings
later in the year. None began the year rated investment grade.
• Of the entities that defaulted in 2015 (and that had ratings as of Jan. 1, 2015), we rated 65% 'B-' or lower at the start
of the year.
• The overall volume of debt affected by 2015's defaulters was relatively smaller than would be expected historically.
The largest defaulter in 2015 based on outstanding debt volume was Arch Coal Inc. It missed interest payments on
Dec. 22 on its senior unsecured notes, and S&P Global Ratings believed they would not be paid within the 30-day
grace period. At the time, the company had a total of $6 billion in debt outstanding, which was the smallest amount

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of debt outstanding for the largest annual defaulter in the last eight years.
• Markets contracted noticeably in the second half of 2015 on global financial and economic concerns, and corporate
bonds in the U.S. experienced losses for the year as a result. By year-end, speculative-grade bonds in the U.S. fell
2.8%, after posting a gain of 4.1% through May 31. Investment-grade bonds saw a steadier, slower pace of decline
through most of the year, ultimately coming in at a loss of 0.7%.
• The market jitters of the second half of the year pushed borrowing costs higher and prompted a flight to safety,
causing a large contraction in the amount of new issuance in 2015. The total amount of annual new issuance fell to
$3.25 trillion (over 9,572 issues) from the 2014 high of $3.76 trillion (11,933 issues).
• As a further reflection of increased risk associated with corporate bonds amid the chaotic market environment in the
second half of the year, spreads on both investment-grade and speculative-grade U.S. corporate bonds shot up,
pushing the five-year speculative-grade spread to 631 basis points (bps) from 491 bps in early June, while the
10-year investment-grade spread ended 2015 at 188 bps, compared with 146 bps in early March.
• The outstanding debt volume affected by defaults rose in 2015 to $110.3 billion from $91.6 billion in 2014. This
increase was largely the result of the even larger rise in the number of defaulters, though, on average, the amount of
debt affected per defaulter was much smaller than in 2014 (see chart 6).
• Overall ratings stability dropped in 2015, but only back to historical averages after it reached a higher level in 2014.
While having declined somewhat overall, stability rates by rating category are still high by historical averages and
continue to demonstrate a positive correlation with ratings.
• The percentage of defaulters with confidential ratings plummeted in 2015 to the lowest level since 2004. Of the 113
defaulters, seven had confidential issuer credit ratings, constituting 6.2% of the total. In 2014, confidentially rated
issuers accounted for 11.7%.
• Eight of the defaulters in 2015 were initially rated 'BBB-' or higher, and the other 105 (92.9% of the total) had initial
ratings of 'BB+' or lower.
• Of the defaulted entities in 2015 that S&P Global Ratings initially rated investment grade, the average time to
default--the time between first rating and date of default--was 19.2 years, with an associated standard deviation of
6.6 years.
• In contrast, the average time to default among entities initially rated 'BB+' or lower was 5.25 years, with an
associated standard deviation of 5.9 years.
• For all of the issuers that defaulted in 2015, the average time to default from first rating was 6.2 years, with a median
of 3.9 years and a standard deviation of 6.9 years.
• The issuer with the longest time to default in 2015 was U.S.-based Standard Register Co., which took 34.2 years to
default from its initial rating of 'A-'. U.S.-based RadioShack Corp.'s time to default was just one month shorter, and it
had an initial rating of 'BB'.
• At the opposite end of the spectrum, the issuer with the shortest time to default, at just five days, was U.S.-based
EXCO Resources Inc. This was the second time in less than two weeks that the company exercised a distressed
exchange. We consider companies that reemerge from default--including distressed exchanges--as new entities for
the purposes of this study.
• Alongside the overall increase in defaults in 2015, nearly every sector experienced at least one default, with the
exception of telecommunications. The industry with the largest number of defaulters last year was energy and
natural resources, with 44, or 39% of the total. This is the second year in a row that the sector contributed the most
to the total.
• At the issuer level, S&P Global Ratings assigned first ratings on 658 entities in 2015, down substantially from 913 in
2014. Both the investment-grade and speculative-grade segments saw declines in the number of newly rated issuers
in 2015, though the speculative-grade segment's drop in the number of newly assigned ratings from 2014 was 33%,
more substantial than the 12% for investment grade.

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Annual Global Trends

The number of defaulters that began the year with active ratings in 2015 was significantly higher than in 2014 (see
chart 5), and the amount of affected debt also rose, by just under $19 billion (see chart 6). Consistent with historical
trends, the U.S. accounted for the majority of defaults--by both count and amount of affected debt in 2015. This is
mostly attributable to the larger rated population in the U.S. (roughly 47% of the global total at the start of 2015).
However, emerging markets have had an increasing percentage of defaulters in recent years, accounting for about
one-fifth to one-quarter of all defaults annually.
Alongside an increase in default activity in 2015, the proportion of upgrades fell, and the proportion of downgrades
increased (see table 6). With the downgrade ratio finishing at 11.8% and the upgrade ratio at 7.4%, the
downgrade-to-upgrade ratio moved back to over parity, to 1.6, after dipping below 1 the prior year. A ratio of 1
indicates that the percentage of upgrades and the percentage of downgrades is equal. In every month of 2015,
downgrades outpaced upgrades--by an average of more than 41 issuers--and the gap widened substantially in the last
four months of the year. Downgrades totaled 145 in September, with about half of those being the result of the
sovereign downgrades of Brazil and Japan during the month.
Table 5
Largest Global Rated Defaulters By Year
Largest corporate defaulters by outstanding debt amount
Year defaulted Issuer Amount (mil. $)

1994 Confederation Life Insurance 2,415
1995 Grand Union Co./Grand Union Capital 2,163
1996 Tiphook Finance 700
1997 Flagstar Corp. 1,021
1998 Service Merchandise Co. 1,326
1999 Integrated Health Services Inc. 3,394
2000 Owens Corning 3,299
2001 Enron Corp. 10,779
2002 WorldCom Inc. 30,000
2003 Parmalat Finanziaria SpA 7,177
2004 RCN Corp. 1,800
2005 Calpine Corp. 9,559
2006 Pliant Corp. 1,644
2007 Movie Gallery Inc. 1,225
2008 Lehman Brothers Holdings Inc. 144,426
2009 Ford Motor Co. 70,989
2010 Energy Future Holdings Corp. 47,648
2011 Texas Competitive Electric Holdings Co. LLC 32,460
2012 BTA Bank J.S.C. 10,184

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Table 5
Largest Global Rated Defaulters By Year (cont.)
Largest corporate defaulters by outstanding debt amount
Year defaulted Issuer Amount (mil. $)

2015 Arch Coal Inc. 6,025
Chart 5

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Chart 6
Table 6
Summary Of Annual Corporate Rating Changes (%)*
Issuers
as of Withdrawn Changed Unchanged Downgrade/upgrade
Year Jan. 1 Upgrades Downgrades§ Defaults ratings ratings ratings ratio
1981 1,383 9.76 13.30 0.14 2.02 25.23 74.77 1.36
1982 1,431 5.87 12.65 1.19 5.38 25.09 74.91 2.15
1983 1,452 7.09 11.78 0.76 5.23 24.86 75.14 1.66
1984 1,539 11.24 10.07 0.91 2.86 25.08 74.92 0.90
1985 1,626 7.87 13.78 1.11 4.06 26.81 73.19 1.75
1986 1,862 7.25 15.79 1.72 6.82 31.58 68.42 2.18
1987 2,015 7.20 11.86 0.94 9.23 29.23 70.77 1.65
1988 2,103 8.89 11.89 1.38 8.18 30.34 69.66 1.34
1989 2,141 9.67 10.98 1.77 7.99 30.41 69.59 1.14
1990 2,125 6.16 15.25 2.73 6.54 30.68 69.32 2.47
1991 2,060 6.02 14.32 3.25 3.54 27.14 72.86 2.38
1992 2,143 9.57 11.48 1.49 3.97 26.50 73.50 1.20
1993 2,326 8.56 9.24 0.60 8.34 26.74 73.26 1.08
1994 2,558 7.08 9.34 0.63 4.61 21.66 78.34 1.32

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Table 6
Summary Of Annual Corporate Rating Changes (%)* (cont.)
Issuers
as of Withdrawn Changed Unchanged Downgrade/upgrade
Year Jan. 1 Upgrades Downgrades§ Defaults ratings ratings ratings ratio
1995 2,868 9.07 9.87 1.05 4.60 24.58 75.42 1.09
1996 3,128 9.72 7.80 0.51 7.03 25.06 74.94 0.80
1997 3,490 9.20 7.94 0.63 7.56 25.33 74.67 0.86
1998 4,078 7.53 11.60 1.28 7.99 28.40 71.60 1.54
1999 4,529 5.92 12.06 2.14 9.05 29.17 70.83 2.04
2000 4,680 6.88 12.65 2.48 7.14 29.15 70.85 1.84
2001 4,756 5.99 16.61 3.78 7.57 33.96 66.04 2.77
2002 4,784 5.20 19.19 3.60 7.23 35.22 64.78 3.69
2003 4,782 6.46 14.60 1.92 7.34 30.32 69.68 2.26
2004 5,017 8.79 7.59 0.78 7.26 24.42 75.58 0.86
2005 5,307 12.85 9.21 0.60 8.52 31.19 68.81 0.72
2006 5,461 12.31 8.75 0.48 8.77 30.31 69.69 0.71
2007 5,646 13.51 9.30 0.37 10.63 33.81 66.19 0.69
2008 5,729 7.92 16.01 1.80 7.72 33.44 66.56 2.02
2009 5,616 4.81 19.12 4.18 8.89 37.00 63.00 3.98
2010 5,310 11.96 8.78 1.21 6.53 28.47 71.53 0.73
2011 5,629 12.24 11.97 0.80 7.85 32.87 67.13 0.98
2012 5,805 8.44 12.30 1.14 6.91 28.79 71.21 1.46
2013 6,041 11.41 9.39 1.06 6.74 28.59 71.41 0.82
2014 6,488 9.20 8.46 0.69 7.15 25.51 74.49 0.92
2015 6,906 7.43 11.79 1.36 8.36 28.93 71.07 1.59
Weighted 8.78 11.84 1.49 7.36 29.46 70.54 1.56
average
Average 8.54 11.91 1.44 6.85 28.74 71.26 1.57
Median 8.44 11.79 1.14 7.23 28.79 71.21 1.36
Standard 2.30 3.05 1.02 1.95 3.52 3.52 0.81
deviation
Minimum 4.81 7.59 0.14 2.02 21.66 63.00 0.69
Maximum 13.51 19.19 4.18 10.63 37.00 78.34 3.98
*This table compares the net change in ratings from the first to the last day of each year. All intermediate ratings are disregarded. §Excludes
downgrades to 'D', shown separately in the default column. Sources: Standard & Poor's Global Fixed Income Research and Standard & Poor's
CreditPro®.
Ratings stability--as measured by the percentage of issuers with unchanged ratings--dropped somewhat in 2015. With
this decline, the magnitude of absolute rating changes rose. The number of corporate issuers that experienced a rating
change of more than six notches in 2015 jumped to a six-year high of seven--six of these were downgrades (see chart
7). Here, we include movements to 'D' as well as what we normally report as downgrades (downward movements
between active ratings). All of the large downgrades within this measure were movements to default, with five
possessing a rating in the 'B' category just prior to default, and the sixth-- Kaisa Group Holdings Ltd.--defaulting from a
'BB-' rating. The last time an entity defaulted from the 'BB' rating category was on Dec. 4, 2008 (Commonwealth Land

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Title Insurance Co.).
Chart 7
Most of the major regions saw increases in their annual speculative-grade default rates in 2015 (see table 7 and chart
21). Although, the default rate in the other developed region (consisting of Australia, Canada, Japan, and New Zealand)
remained steady at 2.8%. Default activity in 2015 increased relative to the last few years but, in general, remained
below long-term averages. However, these averages are often biased by the high default rates that occur in peak years
(1991, 2001/2002, and 2009). On the other hand, when comparing 2015's default rates across the major regions to
their long-term medians, Europe and emerging markets are now above these longer-term measures, and the other
developed countries have now hit that level.
Table 7
Annual Corporate Speculative-Grade Default Rate By Geographic Region (%)
Year U.S. and tax havens* Europe§ Emerging markets Other†
1981 0.63 0.00 N/A 0.00
1982 4.44 0.00 N/A 0.00
1983 2.99 0.00 N/A 0.00
1984 3.33 0.00 0.00 0.00
1985 4.41 0.00 N/A 0.00

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Table 7
Annual Corporate Speculative-Grade Default Rate By Geographic Region (%) (cont.)
Year U.S. and tax havens* Europe§ Emerging markets Other†
1986 5.76 0.00 N/A 0.00
1987 2.84 0.00 N/A 0.00
1988 3.89 0.00 N/A 0.00
1989 4.33 0.00 N/A 42.86
1990 7.94 0.00 N/A 33.33
1991 10.73 66.67 N/A 14.29
1992 6.25 0.00 N/A 0.00
1993 2.40 20.00 0.00 0.00
1994 2.20 0.00 0.00 0.00
1995 3.65 9.09 0.00 0.00
1996 1.85 0.00 0.00 2.70
1997 2.17 0.00 0.00 1.92
1998 3.25 0.00 8.55 1.43
1999 5.25 6.25 7.66 4.40
2000 7.38 2.52 1.66 6.52
2001 10.62 8.33 6.27 12.36
2002 7.26 12.41 17.55 5.94
2003 5.60 3.66 3.90 4.76
2004 2.45 1.60 0.84 1.99
2005 2.02 0.94 0.24 1.30
2006 1.37 1.79 0.44 0.76
2007 1.02 0.96 0.20 2.24
2008 4.28 2.50 2.41 3.79
2009 11.72 8.67 5.46 9.60
2010 3.44 1.01 1.55 7.96
2011 2.14 1.59 0.47 6.14
2012 2.64 2.24 2.62 2.33
2013 2.17 3.43 2.00 1.97
2014 1.60 0.97 1.05 2.82
2015 2.83 2.10 3.07 2.79
Average 4.20 3.05 3.30 4.19
Median 3.33 1.94 1.83 2.81
Standard deviation 2.79 3.33 4.23 3.07
Minimum 0.63 0.00 0.00 0.76
Maximum 11.72 12.41 17.55 12.36
Note: Descriptive statistics for regions other than U.S. calculated from 1996 to 2015 due to sample size considerations. *U.S., Bermuda, and
Cayman Islands. §Austria, Belgium, British Virgin Islands, Bulgaria, Channel Islands, Croatia, Cyprus, Czech Republic, Denmark, Estonia, Finland,
France, Germany, Gibraltar, Greece, Guernsey, Hungary, Iceland, Ireland, Isle of Man, Italy, Jersey, Latvia, Liechtenstein, Lithuania,
Luxembourg, Malta, Monaco, Montenegro, Netherlands, Norway, Poland, Portugal, Romania, Slovakia, Slovenia, Spain, Sweden, Switzerland, and
U.K. †Australia, Canada, Japan, and New Zealand. N/A--Not available. Sources: Standard & Poor's Global Fixed Income Research and Standard
& Poor's CreditPro®.
Data on defaulted corporate issuers globally indicate that defaults among speculative-grade entities tend to be

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clustered in the third year after the initial rating, particularly in the 'B' rating category (see chart 8). For example,
among defaulters that were rated 'B' at origination, the default rate climbs to a high of 19.5% in the first three years and
then decelerates thereafter. Defaulted issuers initially rated 'BB' show a similar pattern but peak a little later--in the
fourth year. Conversely, defaulters initially rated 'CCC' show the reverse, with the highest default rate observed in the
first year, which is not surprising given the low rating.
Chart 8
In 2015, 105 (or 92.9%) of the 113 defaulted entities were originally rated speculative grade, which is more than six
percentage points higher than the long-term average of 86.4%. This is typical in years with lower default rates and is
reflected in the rating path observed for defaulters in the trailing 12 quarters (see chart 9) The median rating for all
recently defaulted entities was solidly in the speculative-grade category in the seven years preceding default, and at
any time during that period, it was at least one notch below that of the long-term equivalent.
Financial institutions and insurance companies are particularly sensitive to sudden declines in investor confidence,
which can result in a relatively fast descent into default (see chart 10). This was especially evident during the recent
financial crisis, when many highly rated banks defaulted within a short amount of time from their initial downgrades.
However, now that about seven years have passed since the crisis, even the recent defaulters among financials had a
speculative-grade median rating seven years prior to default. In contrast, nonfinancial defaulters travel a much slower,

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smoother, and shorter path to default (see chart 11). A major difference between financials and nonfinancials is the
incidence of default. Defaults are much less frequent for financial companies than they are among nonfinancials, which
can also allow outliers to bias the averages. For instance, in the three years ended Dec. 31, 2015, 229 nonfinancial
companies defaulted, while only 25 financials did. This helps to explain the more volatile path to default among
financial institutions and insurance companies.
Chart 9

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Chart 10

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Chart 11
Some issuers default when S&P Global Ratings no longer rates them. We make our best effort to capture such defaults
in the database, and we include them in the annual default rate calculations if an entity was rated as of Jan. 1 in the
year of default. If, however, S&P Global Ratings withdrew the rating prior to Jan. 1 of the year of default, we did not
include the issuer in the default rate calculation in that year. Of the 113 defaulted companies in 2015, 10.6% were not
rated just prior to default, which is noticeably lower than the long-term total of 18.1% (see chart 12). Furthermore,
although 'NR' defaulters are not always captured in the default rate calculation for the year of default, we do capture
them in the longer-term cumulative default rate statistics, tied back to the year in which they were last rated. All of the
defaulters in 2015 that had active ratings immediately prior to default were rated in the lowest rating categories. In
particular, 73.5% were rated 'CCC+' or lower just prior to default, which is much higher than the 65.2% long-term total.

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Chart 12a

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Chart 12b
Table 8 provides a list of all the defaulted, publicly rated companies recorded in 2015. For additional details on the
2015 defaulters, see Appendix III.
Table 8
2015 Global Publicly Rated Corporate Defaults
Rating Rating
one three
year years
Debt prior prior
Reason for amount Default to to First Date of
Company name default Country Industry (mil.$) date default default rating first rating
Kaisa Group Missed Cayman Forest and building 2,832.6 1/5/2015 B+ B+ BB- 4/12/2010
Holdings Ltd. principal or Islands products/homebuilders
interest
OAS S.A. Missed Brazil Aerospace/auto/capital 1,934.8 1/7/2015 BB- BB- 9/17/2012
principal or goods/metal
interest
Renhe Distressed Cayman Real estate 900.0 1/8/2015 CCC BB- BB 4/27/2010
Commercial exchange Islands
Holdings Co. Ltd.
Verso Paper Distressed U.S. Forest and building 1,428.0 1/8/2015 B- B 5/14/2012
Holdings LLC exchange products/homebuilders

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Table 8
2015 Global Publicly Rated Corporate Defaults (cont.)
Rating Rating
one three
year years
Debt prior prior
Virgolino de Missed Brazil Consumer/service 735.0 1/14/2015 B B B 1/12/2011
Oliveira S.A. - principal or
Acucar e Alcool interest
Talon PIKco N.V. Distressed Belgium Leisure time/media 0.0 1/29/2015 CCC CCC+ B- 12/2/2010
exchange
Connacher Oil Distressed Canada Energy and natural resources 825.8 2/2/2015 CCC+ B B+ 9/6/2006
and Gas Ltd. exchange
Corporate Risk Chapter 11 U.S. Consumer/service 3,137.0 2/3/2015 CCC+ 7/4/2014
Holdings LLC
Afren PLC Missed U.K. Energy and natural resources 1,160.0 2/4/2015 B+ B B- 11/26/2010
principal or
interest
RadioShack Corp. Chapter 11 U.S. Consumer/service 325.0 2/6/2015 CCC+ BB- BB 12/31/1980
Bank Tavrichesky Missed Russian Financial institutions 0.0 2/18/2015 B- B- 5/29/2012
principal or Federation
interest
Commercial Bank Missed Russian Financial institutions 0.0 2/18/2015 B B 12/30/2013
Sudostroitelny principal or Federation
Bank LLC interest
Quicksilver Missed U.S. Energy and natural resources 3,225.0 2/19/2015 CCC+ B+ BB- 3/3/2006
Resources Inc. principal or
interest
Norske Distressed Norway Forest and building 1,263.4 2/27/2015 CCC+ CCC+ 2/15/2013
Skogindustrier exchange products/homebuilders
ASA
BPZ Resources, Missed U.S. Energy and natural resources 150.0 3/4/2015 CCC+ 10/2/2014
Inc. principal or
interest
American Eagle Missed U.S. Energy and natural resources 175.0 3/4/2015 CCC+ 8/5/2014
Energy Corp. principal or
interest
Doral Financial Chapter 11 U.S. Financial Institutions 177.7 3/11/2015 CCC- CCC+ BBB- 9/9/1996
Corp.
Standard Register Chapter 11 U.S. Leisure time/media 0.0 3/12/2015 NR NR A- 12/31/1980
Co.
UC Holdings Inc. Chapter 11 U.S. Aerospace/auto/capital 525.0 3/12/2015 B- B 11/14/2012
goods/metal
Allied Nevada Chapter 11 U.S. Energy and natural resources 312.8 3/18/2015 B B 6/7/2012
Gold Corp
Armtec Holdings Missed Canada Forest and building 119.2 3/23/2015 B- B BB- 9/1/2010
Ltd. principal or products/homebuilders
interest
Sete Brasil Missed Brazil Energy and natural resources 573.7 3/23/2015 BB+ BB+ 10/23/2012
Participacoes S.A principal or
interest
EveryWare, Inc. Chapter 11 U.S. Consumer/service 0.0 4/1/2015 B B 4/19/2012

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Table 8
Rating Rating
one three
year years
Debt prior prior
Liberty Tire Distressed U.S. Health care/chemicals 225.0 4/3/2015 B- B B 9/16/2010
Recycling Holdco exchange
LLC
Venoco Inc. Distressed U.S. Energy and natural resources 965.0 4/3/2015 B- B B- 12/6/2004
exchange
Xinergy Corp. Chapter 11 U.S. Aerospace/auto/capital 200.0 4/6/2015 NR B- B- 5/26/2011
goods/metal
RAAM Global Missed U.S. Energy and natural resources 438.4 4/7/2015 B- B- B- 8/6/2010
Energy Co. principal or
interest
American Natural Chapter 11 U.S. Utility 0.0 4/13/2015 NR NR B+ 8/24/1984
Resources Co.
Walter Energy Missed U.S. Energy and natural resources 4,045.0 4/17/2015 CCC+ 8/15/2014
Inc. principal or
interest
Sabine Oil & Gas Missed U.S. Energy and natural resources 4,350.0 4/22/2015 B- BB- B 5/7/1993
Corp. principal or
interest
Winsway Missed British Transportation 309.0 4/27/2015 CCC CCC 10/28/2013
Enterprises principal or Virgin
Holdings Ltd. interest Islands
Halcon Distressed U.S. Energy and natural resources 3,700.0 5/1/2015 B B- 6/25/2012
Resources Corp. exchange
Magnetation LLC Chapter 11 U.S. Energy and natural resources 425.0 5/6/2015 B- B- 5/7/2013
Patriot Coal Chapter 11 U.S. Energy and natural resources 500.0 5/14/2015 B B 12/20/2013
Corp.
Colt Defense LLC Missed U.S. Aerospace/auto/capital 250.0 5/19/2015 CCC+ B- B 8/1/2007
interest
Far-Eastern Distressed Russian Transportation 800.0 5/19/2015 B+ BB- 5/8/2013
Shipping Co. PLC exchange Federation
SandRidge Distressed U.S. Energy and natural resources 4,540.5 5/20/2015 B B B 3/8/2007
Energy Inc. exchange
Tunica-Biloxi Missed U.S. Leisure time/media 150.0 5/20/2015 B- B+ B+ 11/1/2005
Gaming Authority principal or
interest
Ceagro Agricola Missed Brazil Consumer/service 100.0 5/21/2015 B B B 10/4/2010
principal or
interest
The State Missed Ukraine Transportation 500.0 5/21/2015 CCC B- B- 5/21/2012
Administration of principal or
Railways interest
Transport of
Ukraine
Midstates Distressed U.S. Energy and natural resources 1,300.0 5/22/2015 B B 9/6/2012
Petroleum Co. exchange
Inc.

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Table 8
Rating Rating
one three
year years
Debt prior prior
Lupatech S.A. Foreign Brazil Aerospace/auto/capital 0.0 5/26/2015 CCC- 10/2/2014
bankruptcy goods/metal
Warren Distressed U.S. Energy and natural resources 500.0 5/27/2015 NR B- 5/31/2013
Resources, Inc. exchange
Molycorp Inc. Missed U.S. Energy and natural resources 1,236.5 6/2/2015 CCC+ 12/10/2014
principal or
interest
Cimento Tupi Missed Brazil Forest and building 150.0 6/11/2015 B B B 4/11/2011
S.A. principal or products/homebuilders
interest
Project Porsche Distressed U.S. High 0.0 6/15/2015 B B 5/7/2014
Holdings Corp. exchange technology/computers/office
equipment
Walter Energy Missed U.S. Energy and natural resources 5,520.0 6/23/2015 CCC- 6/8/2015
Inc.§ principal or
interest
American Energy Distressed U.S. Energy and natural resources 350.0 6/25/2015 B- 9/4/2014
- Woodford, LLC exchange
Alpha Bank A.E. Regulatory Greece Financial institutions 1,184.0 6/30/2015 CCC+ CCC BBB- 12/19/1997
directive
Eurobank Regulatory Greece Financial institutions 1,992.1 6/30/2015 CCC+ CCC BBB- 10/25/1999
Ergasias S.A directive
National Bank of Regulatory Greece Financial institutions 722.4 6/30/2015 CCC+ CCC BBB- 9/17/1997
Greece S.A. directive
Piraeus Bank S.A. Regulatory Greece Financial institutions 944.2 6/30/2015 CCC+ CCC BBB- 12/17/1999
directive
Sharp Corp. Distressed Japan High 489.1 6/30/2015 B+ BBB+ A 11/20/2002
exchange technology/computers/office
equipment
Ferrexpo PLC Distressed U.K. Energy and natural resources 632.7 7/6/2015 B- B+ B+ 6/30/2010
exchange
Lightstream Distressed Canada Energy and natural resources 335.0 7/9/2015 B+ B B 1/18/2012
Resources Ltd. exchange
PT Berau Coal Distressed Indonesia Energy and natural resources 950.0 7/9/2015 BB- BB- B+ 6/22/2010
Energy Tbk. exchange
Tonon Bioenergia Distressed Brazil Consumer/service 530.0 7/14/2015 B B 1/7/2013
S.A. exchange
CORE Missed U.S. Leisure time/media 360.0 7/17/2015 B B B 1/18/2012
Entertainment principal or
Inc. interest
Great Atlantic & Chapter 11 U.S. Consumer/service 1,260.0 7/19/2015 CCC B- B- 3/20/2012
Pacific Tea Co.
Inc. (The)
Hercules Missed U.S. Energy and natural resources 1,800.0 7/28/2015 B B- B- 6/7/2005
Offshore Inc. principal or
interest

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Table 8
Rating Rating
one three
year years
Debt prior prior
Coyne Chapter 11 U.S. Consumer/service 0.0 7/31/2015 NR NR B+ 6/12/1998
International
Enterprises Corp.
Alpha Natural Chapter 11 U.S. Energy and natural resources 3,770.0 8/3/2015 B BB- BB- 7/8/2004
Resources Inc.
ASG Distressed U.S. Consumer/service 235.0 8/11/2015 B- B- B+ 10/12/2004
Consolidated exchange
LLC
Black Elk Energy Chapter 11 U.S. Energy and natural resources 150.0 8/11/2015 CCC+ B- B- 11/4/2010
Offshore
Operations LLC
SandRidge Distressed U.S. Energy and natural resources 4,725.0 8/14/2015 CCC+ 5/28/2015
Energy Inc.§ exchange
Samson Missed U.S. Energy and natural resources 0.0 8/17/2015 B B+ B+ 1/31/2012
Resources Corp principal or
interest
Wilton Holdings Distressed U.S. Consumer/service 0.0 8/24/2015 B- B B 8/7/2012
Inc. exchange
SAExploration Distressed U.S. Energy and natural resources 150.0 8/27/2015 B- B- 6/17/2014
Holdings, Inc. exchange
Halcon Distressed U.S. Energy and natural resources 3,900.0 8/28/2015 B- 6/22/2015
Resources Corp.§ exchange
Univita Health Chapter 7 U.S. Health care/chemicals 220.0 8/28/2015 NR B B 8/12/2011
Inc.
Investtradebank Regulatory Russian Financial institutions 0.0 9/1/2015 B+ B+ 10/14/2013
JSC directive Federation
Goodrich Distressed U.S. Energy and natural resources 935.3 9/2/2015 B- B B 2/24/2011
Petroleum Corp. exchange
Quiksilver Inc. Chapter 11 U.S. Consumer/service 729.4 9/10/2015 B- B BB 6/30/2005
PrivatBank Ukraine Financial institutions 9/23/2015 CCC NR B- 10/28/2003
Edcon Holdings Distressed South Consumer/service 1,164.8 9/25/2015 B- B- B+ 6/5/2007
Ltd. exchange Africa
Floworks Distressed U.S. Energy and natural resources 250.0 9/29/2015 B- B 10/22/2012
International LLC exchange
Dex Media Inc. Missed U.S. Leisure time/media 300.0 10/1/2015 CCC+ B- 5/17/2013
principal or
interest
MMM Holdings Missed U.S. Insurance 480.0 10/2/2015 B+ B+ 10/9/2012
Inc. principal or
interest
American Chapter 11 U.S. Consumer/service 200.0 10/5/2015 CCC- B- 3/20/2013
Apparel Inc.
SandRidge Distressed U.S. Energy and natural resources 5,400.0 10/8/2015 CCC+ 8/20/2015
Energy Inc.§ exchange
Affirmative Chapter 11 U.S. Insurance 0.0 10/14/2015 NR NR B 12/11/2006
Insurance
Holdings Inc.

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Table 8
Rating Rating
one three
year years
Debt prior prior
Nota Bank Regulatory Russian Financial institutions 0.0 10/14/2015 B B 6/13/2013
directive Federation
Logan's Distressed U.S. Consumer/service 30.0 10/20/2015 B- B- B- 11/1/2006
Roadhouse Inc. exchange
EXCO Resources Distressed U.S. Energy and natural resources 1,850.0 10/21/2015 B B B+ 1/12/2004
Inc. exchange
NYDJ Apparel Distressed U.S. Consumer/service 162.5 10/23/2015 B B 12/13/2013
LLC exchange
EXCO Resources Distressed U.S. Energy and natural resources 966.0 11/3/2015 CCC+ 10/29/2015
Inc.§ exchange
Vantage Drilling Missed U.S. Energy and natural resources 1,950.0 11/3/2015 B- B- B- 7/23/2010
Co. principal or
interest
Hidili Industry Missed Cayman Energy and natural resources 400.0 11/4/2015 CCC CCC 10/23/2014
International principal or Islands
Development interest
Ltd.
Globo PLC Adiministration U.K. High 0.0 11/6/2015 BB- 6/19/2015
technology/computers/office
equipment
Affinion Group Distressed U.S. Leisure time/media 592.5 11/10/2015 CCC+ CCC+ 6/12/2014
Holdings Inc. exchange
Essar Steel Chapter 15 Canada Energy and natural resources 1,002.0 11/11/2015 B- 11/17/2014
Algoma Inc.
China Shanshui Missed Hong Forest and building 1,300.0 11/13/2015 B+ BB BB 5/8/2011
Cement Group principal or Kong products/homebuilders
Ltd. interest
Millennium Chapter 11 U.S. Health care/chemicals 1,825.0 11/13/2015 B+ B+ 3/28/2014
Health LLC
BANK URALSIB Regulatory Russian Financial institutions 0.0 11/25/2015 B+ BB- CCC+ 8/31/2001
(PJSC) directive Federation
China Fishery Missed Hong Consumer/service 0.0 11/26/2015 B B+ B+ 12/1/2006
Group Ltd. principal or Kong
interest
Swift Energy Co. Missed U.S. Energy and natural resources 1,515.0 12/2/2015 B B+ B+ 11/11/1996
principal or
interest
PrivatBank§ Distressed Ukraine Financial institutions 0.0 12/4/2015 CC 9/28/2015
exchange
Tonon Bioenergia Judicial Brazil Consumer/service 0.0 12/10/2015 CCC- 7/17/2015
S.A.§ recovery
Getty Images Inc. Distressed U.S. Leisure time/media 2,865.0 12/11/2015 B B B+ 5/21/1998
exchange
Magnum Hunters Chapter 11 U.S. Energy and natural resources 940.0 12/15/2015 B- B- B- 5/7/2012
Resources Corp.
Abengoa S.A. Missed Spain Energy and natural resources 2,075.6 12/16/2015 B B+ B+ 10/13/2010
principal or
interest

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Table 8
Rating Rating
one three
year years
Debt prior prior
Empresas ICA Missed Mexico Aerospace/auto/capital 1,550.0 12/18/2015 B+ BB- BBB 3/4/1994
S.A.B. de C.V. principal or goods/metal
interest
Foreign Regulatory Russian Financial institutions 267.3 12/21/2015 B+ B CCC 9/6/2007
Economic directive Federation
Industrial Bank
(Vneshprombank)
Arch Coal Inc. Missed U.S. Aerospace/auto/capital 6,025.0 12/22/2015 B B+ BB+ 10/13/1998
interest
Heckler & Koch Distressed Germany Aerospace/auto/capital 321.9 12/22/2015 CCC CCC B 7/2/2004
GmbH exchange goods/metal
Cognor S.A. Distressed Poland Energy and natural resources 0.0 12/30/2015 CCC+ CCC+ 2/17/2014
exchange
Total* 109,801.3
*This total does not match table 1 because it excludes confidentially rated defaults. §Initial ratings for these companies are those immediately
following a prior default in 2015. Initial ratings, or those as of Dec. 31, 1980. Sources: Standard & Poor’s Global Fixed Income Research and Standard
& Poor’s CreditPro®.
The number of large rating changes (in terms of number of notches) hit seven in 2015--the highest level in the last six
years. Considering this, it is not surprising that the annual average number of notches of ratings changes for both
upgrades and downgrades expanded as well (see chart 13). At the end of 2015, the average number of notches for
upgrades was 1.18 (from 1.16 in 2014), and the average notches for downgrades was 1.47 (from 1.36 in 2014).

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Chart 13
Table 9
One-Year Global Corporate Default Rates By Rating Modifier (%)
AAA AA+ AA AA- A+ A A- BBB+ BBB BBB- BB+ BB BB- B+ B B- CCC/C
1981 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 3.28 0.00 0.00
1982 0.00 0.00 0.00 0.00 0.00 0.33 0.00 0.00 0.68 0.00 0.00 2.86 7.04 2.22 2.33 7.41 21.43
1983 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 1.33 2.17 0.00 1.59 1.23 9.80 4.76 6.67
1984 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 1.40 0.00 0.00 1.64 1.49 2.15 3.51 7.69 25.00
1985 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 1.64 1.49 1.33 2.61 13.11 8.00 15.38
1986 0.00 0.00 0.00 0.00 0.00 0.00 0.76 0.00 0.78 0.00 1.82 1.18 1.12 4.68 12.16 16.67 23.08
1987 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.83 1.31 5.95 6.82 12.28
1988 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 2.34 1.99 4.50 9.80 20.37
1989 0.00 0.00 0.00 0.00 0.00 0.00 0.58 0.90 0.78 0.00 0.00 0.00 2.00 0.43 7.80 4.88 33.33
1990 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.76 0.00 1.10 2.78 3.09 4.50 4.89 12.26 22.58 31.25
1991 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.83 0.74 0.00 3.70 1.14 1.05 8.72 16.25 32.43 33.87
1992 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.72 14.93 20.83 30.19
1993 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 1.94 0.00 1.30 5.88 4.17 13.33
1994 0.00 0.00 0.00 0.00 0.46 0.00 0.00 0.00 0.00 0.00 0.00 0.86 0.00 1.84 6.58 3.13 16.67
1995 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.64 0.00 1.56 1.12 2.77 8.00 7.50 28.00

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Table 9
One-Year Global Corporate Default Rates By Rating Modifier (%) (cont.)
AAA AA+ AA AA- A+ A A- BBB+ BBB BBB- BB+ BB BB- B+ B B- CCC/C
1996 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.65 0.56 2.37 3.74 3.85 8.00
1997 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.37 0.35 0.00 0.00 0.00 0.41 0.72 5.30 14.58 12.00
1998 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.27 1.06 0.67 1.06 0.72 2.60 7.56 9.46 42.86
1999 0.00 0.00 0.00 0.36 0.00 0.24 0.27 0.00 0.28 0.31 0.55 1.34 0.91 4.22 10.45 15.60 33.33
2000 0.00 0.00 0.00 0.00 0.00 0.24 0.57 0.00 0.26 0.89 0.00 0.82 2.06 5.83 10.04 11.61 35.96
2001 0.00 0.00 0.00 0.00 0.58 0.25 0.00 0.24 0.49 0.28 0.52 1.22 5.60 5.84 17.24 22.46 45.45
2002 0.00 0.00 0.00 0.00 0.00 0.00 0.00 1.10 0.88 1.07 1.58 1.77 4.81 3.27 10.23 19.85 44.44
2003 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.20 0.54 0.50 0.97 0.28 1.72 5.34 9.52 32.73
2004 0.00 0.00 0.00 0.00 0.00 0.24 0.00 0.00 0.00 0.00 0.00 0.67 0.52 0.46 2.35 2.84 16.18
2005 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.17 0.00 0.37 0.00 0.51 0.79 2.64 2.96 9.09
2006 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.39 0.00 0.50 0.55 0.82 1.57 13.33
2007 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.32 0.24 0.19 0.00 0.90 15.24
2008 0.00 0.00 0.44 0.41 0.32 0.21 0.60 0.19 0.61 0.73 1.22 0.66 0.68 3.14 3.45 7.59 27.27
2009 0.00 0.00 0.00 0.00 0.30 0.40 0.00 0.42 0.19 1.14 0.00 1.05 0.98 5.96 10.79 17.99 49.46
2010 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.84 0.36 0.57 0.00 0.74 2.12 22.73
2011 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.20 0.00 0.00 0.00 0.42 1.27 4.47 16.42
2012 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.79 0.60 1.44 3.50 27.33
2013 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.26 0.76 0.83 4.65 24.34
2014 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.19 0.33 2.74 17.03
2015 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.26 0.22 1.73 2.03 4.26 25.73
Average 0.00 0.00 0.01 0.02 0.05 0.05 0.08 0.14 0.23 0.27 0.54 0.77 1.29 2.24 6.37 9.12 23.71
Median 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.66 0.72 1.73 5.34 7.41 23.08
Standard deviation 0.00 0.00 0.07 0.09 0.14 0.11 0.21 0.30 0.35 0.43 0.91 0.83 1.68 2.08 4.88 7.64 11.83
Minimum 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
Maximum 0.00 0.00 0.44 0.41 0.58 0.40 0.76 1.10 1.40 1.33 3.70 3.09 7.04 8.72 17.24 32.43 49.46
2015 Timeline: Global Tremors Push The Default Total Past 100
For the first time since the financial crisis, the global default count reached triple digits, coming in at 113. Roughly 39%
of these were from the energy and natural resources sector, which includes many oil and gas companies, as well as
many commodity mining companies. The market stressors of overcapacity and lower demand in those sectors that
began in the second half of 2014 showed no sign of easing in 2015. Meanwhile, some relief (by historical standards)
was seen for typically beleaguered sectors, such as retail and media, which experienced relatively lower incidences of
default in 2015.
Within the first week of the year, the price of a barrel of oil dropped below $50, for the first time in roughly six years.
Many felt at the time that falling prices for oil were indicative of slowing economic growth globally, pushing down
yields on Treasuries and investment-grade bonds, while spurring sell-offs in most countries' stock markets. In
response, many officials across multiple regions began looking at measures to combat a slowdown, prompting the Fed

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to endorse many of these measures--something it would not normally do--while sticking to its own plans to eventually
raise interest rates in 2015. This, of course, ultimately came much later in the year, but at the time was expected much
sooner. This also put the Fed on a completely different track than most other central banks, as the European Central
Bank (ECB) began proposing new measures to spur growth after a deflationary reading for consumer prices in
December. ECB President Mario Draghi's proposal included spending as much as €1.1 trillion, including monthly asset
purchases of €50 billion.
February was the first month of many in the year that had a significant amount of downgrades--in particular, there
were eight sovereign downgrades--the highest monthly total for the year--and 110 for corporates. Among sovereigns,
Angola, Bahrain, Congo-Brazzaville, Gabon, Greece, Kazakhstan, Oman, and Venezuela were downgraded in February.
Greece and Oman experienced further downgrades later in the year. Among corporates, many companies in the oil
and gas and commodities mining sectors also experienced downgrades, the result of continued declines in the prices of
commodities that began in the second half of 2014. Another corporate segment that had a large number of
downgrades in February was Russian financial institutions (including many government-related enterprises, or GREs)
as a result of the Jan. 26 downgrade of Russia. Russian's monetary policies and economic prospects were the main
drivers behind our downgrade, and many of these corporations and GREs were downgraded as a result of S&P Global
Ratings' belief that the government's ability to provide extraordinary support to these firms had eroded. Several other
foreign subsidiaries that operate in Russia were also downgraded at the time because of the increasing operating risks.
A number of these companies eventually defaulted throughout the year, and outside of the U.S., Russian financial
institutions made the largest contribution to the 2015 default count.
Since the onset of the financial crisis in late 2008, lawsuits (and settlements) targeted at the financial industry have
become more regular occurrences. However, 2015 generally saw fewer of these, and of those that did occur, most
were for smaller amounts than in recent years. Late in March, BNY Mellon agreed to pay $714 million in a settlement
over foreign exchange probes by the SEC, the U.S. Labor Department, and the New York Attorney General. The
lawsuits dated back to 2011 and claimed that the bank had defrauded clients for as much as a decade in foreign
exchange transactions. As part of the settlement, BNY Mellon also ended the employment of certain executives who
were involved.
In April, perhaps the first fissures of uncertainty around China's potential economic slowdown--as well as debt
load--appeared. The country's first-quarter 2015 GDP reading came in at 7%. While an enviable level for developed
countries, this was the lowest annualized reading since 2009, though it was in line with the government's targets. As
doubts over China's future performance crept in, many foreign investors began pulling funds out of the country, at a
time when the growing debt load of China was garnering more headlines. In response, rumors began circulating that
the central bank would soon begin a series of credit-easing programs aimed at lowering interest rates for local
businesses, and to keep lending available. Much of the growing debt has been at the local government level, and the
proposal was to allow banks to swap local-government bailout bonds for loans--similar to the long-term refinancing
operations in place with the ECB.
By the end of April, the ECB was able to report that through March, euro-area banks' lending to companies and
households rose for the first time in three years, after the central bank's recent slew of monetary stimulus, including

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buying covered bonds, asset-backed securities, and sovereign debt, as well as extending loans to targeted banks in an
effort to boost lending. Finally, at the end of the month, the Fed held off on what some expected to be the first interest
rate hike in roughly nine years.
The spring and summer saw a return of one of the financial crisis' regular tales: Greek sovereign woes. In May, the
ECB decided against tightening the terms of the Emergency Liquidity Assistance program, starting the latest chapter
on positive footing. This helped push the yield on Greece's €2.1 billion, 3.38% bonds due in 2017 down to just under
21%, from as high as 29% in the month prior. While this was relatively good news for Greece, most market participants
sensed impending volatility, beginning a decline in the euro relative to the dollar, which experienced a slight correction
by June but eventually returned through year-end. Adding to the decline in May, the shared currency fell on the news
that the ECB would be accelerating its bond-buying program through increased monthly purchases. Another round of
foreign exchange-related lawsuits surfaced in May, as six of the largest banks paid $5.8 billion in combined charges to
the Justice Department, with five of the banks also pleading guilty to charges of conspiring to manipulate pricing of
dollars and euros.
As 2015 approached its mid-point, stress began appearing in nearly every corner of the global financial sector. U.S.
first-quarter productivity of nonfarm workers came in with a 3.1% seasonally adjusted annual decrease (down from an
initial estimate of a 1.9% decline). This was the first time a negative reading was seen in consecutive quarters since
2006, underscoring the sluggish recovery in the U.S. since the financial crisis. In fact, first-quarter GDP in the U.S. also
came in showing a contraction, of 0.2% annually. For the most part, government yields in the U.S. and abroad started
to rise, speculative-grade corporate bond spreads rose from their lowest points of the year (and never came back
down), and equity markets from the developing and developed world began to fall. The VIX (a gauge of near-term
stock market volatility) shot up to just under 19 by month-end, from roughly 12 only a few days before. Such dismal
performance was accompanied by the International Monetary Fund (IMF) cutting its forecast for U.S. economic
growth and an outright plea to the Fed to not raise interest rates until 2016.
The Greek saga provided no shortage of headlines in June. In the middle of the month, talks between Greece and its
creditors broke down, with European officials quickly dismissing Greece's proposals at mending its €245 billion bailout.
The impasse was great enough for many European officials to offer up an alternative that involved Greece defaulting
by month-end, and opening up the possibility of Greece leaving the currency block--popularly termed "Grexit." This led
to a rally for U.S. Treasuries as a safe haven and eventually led to Greece shutting down its banking system for six
days at the end of the month, to prevent a massive exodus of deposits. The local stock market was also closed during
that period.
Only days later, Greece defaulted on its loan from the IMF--the first developed country to do so. The Greek prime
minister asked for another bailout program, though creditors' austerity conditions for new aid only resulted in Greek
voters overwhelmingly voting "no" on the package. Eventually, toward the middle of the month, Greek lawmakers
passed an agreement with the ECB for an €86 billion bailout over three years. Meanwhile, in the Pacific region,
Chinese stock markets had been hit particularly hard, losing roughly 40% in less than a month through the first week of
July (as measured by the Shenzhen Stock Exchange), or roughly $2.4 trillion. This quick and deep slide in Chinese
markets caused the government there to introduce measures to stop the sell-off, including interest rate cuts, and

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organize state-backed companies to buy securities. Fears at the time included spillover effects beyond regional
markets and an increased lack of confidence in the government's ability to manage the economy.
With these stressors still in place, August proved to be one of the worst months for equities in recent years. The S&P
500 stock index lost about 6.25% during the month, and the VIX spiked to nearly 41 on Aug. 24, from roughly 12 only
days before. At the time, it was believed that this was again in reaction to fears out of China, as major indices across
the globe saw declines. Chinese shares finished the day down 8.5%, posting a loss for the year, and the currency lost
roughly 4.5% during this time as well, with more declines in the near future. Meanwhile, Greece and its creditors finally
agreed to a bailout package, and calm seemed to be restored as the ECB provided the maximum level of emergency
aid available to the country's banks.
Amid all of the financial fallout in the prior months, the Republic of Iraq was assigned an initial rating on Sept. 3,
making it the 130th sovereign S&P Global Ratings rates. It was assigned a long-term foreign currency rating of 'B-',
with a stable outlook. The relatively low rating stems largely from the country's very high security and institutional
risks, including its ongoing war with ISIS, and the fiscal pressures arising from the continued drop in the price of
oil--one of the country's main exports and tax revenue sources. And as Iraq joined the ranks of rated sovereigns in
September, Brazil lost its investment-grade rating shortly thereafter. On Sept. 9, S&P Global Ratings lowered its
long-term foreign-currency rating on Brazil to 'BB+' from 'BBB-', largely because of the deteriorating fiscal conditions
in Brazil related to investigations of corruption at state-owned energy company Petrobras. These investigations have
focused on very high-level individuals in both the government and in the private sector, making the near-term political
landscape very uncertain. In more sovereign news, Japan was also downgraded, and only days after its equity market
posted its largest one-day gain since the global financial crisis in 2008. On Sept. 16, S&P Global Ratings lowered its
long-term local and foreign-currency ratings on Japan to 'A+' from 'AA-', after the increased stimulus measures in
recent years were found to have fallen flat. These sovereign downgrades then led to many downgrades in their
respective corporate and banking sectors shortly thereafter. Finally, the Fed ended up holding off on an anticipated
interest rate hike at its September meeting, drawing speculation that one would occur in December.
Sovereign downgrades may have had spillover effects in September, but October started off with an upgrade of Spain
(to 'BBB+' from 'BBB'). The country's labor market reforms in recent years, along with easier financial conditions, have
helped its economic performance in the last few years and led S&P Global Ratings to increase its GDP growth
estimates to about 4% for the next few. These factors drove the upgrade. In what would become a more familiar theme
globally of low, or even negative interest rates, the yield on the three-month Treasury at auction reached zero for the
first time. Meanwhile, the Bank of England kept its main interest rate unchanged, at 0.5% only days later, on fears of
headwinds to domestic and global growth. Within Asia, the People's Bank of China took another step to boost lending
in its economy by letting more commercial lenders use loans as collateral when seeking funding from the central bank.
These funds are then intended to reach areas of the economy targeted as important to growth for China, such as small
businesses. Finally, toward the end of the month, the Fed communicated some of its most direct language on future
rate hikes in the last 10 years by making an explicit case for increasing interest rates at its meeting in December.
At the end of November, the IMF announced that beginning in October 2016, the Chinese yuan would be the fifth
currency to be part of the basket of currencies that make up the Special Drawing Right. While a symbolic boost to

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China, the move also brings with it increased responsibility on the government in terms of communications with the
investor community to build confidence abroad in its management of the currency. Within the U.S., the jobs readings
came in showing that nonfarm jobs rose to a seasonally adjusted level of 271,000 in October, according to the Labor
Department, and this was the highest total for the year. August and September estimates were revised upwards as well,
the unemployment rate rose to 5%, and average hourly earnings for private-sector workers rose to its highest
year-over-year pace since July 2009 (to 2.5%). With such a strong showing in the labor market, this made a December
interest rate hike almost a near certainty.
And it ultimately was. Despite increasing uncertainty and volatility in global financial markets, the Fed felt confident in
the course of the U.S. economy and labor markets. The vote to raise the rate by 25 bps was unanimous, and the goal
was to continue to raise rates progressively over the next three years. Most markets reacted positively, taking the
increase as a sure sign of future U.S. economic growth. However, while the Fed may have had confidence at the time,
the Third Avenue Focused Credit Fund halted its investors' withdrawals after sustaining continued losses in the
corporate bond market. This was a reminder to many of the worries expressed over the changing nature of bond
buyers in recent years, as well as a reflection of the broader decline in corporate bonds in the second half of the year
(largely on the difficulties seen in the oil, gas, and other commodities sectors).
By the end of the year, many financial markets fell across the globe--though with some sporadic gains seen as
well--and the S&P 500 finished essentially flat. Corporate bond issuance declined in the second half of the year, with
the speculative-grade segment being particularly hard hit, while speculative-grade bonds in the secondary markets in
the U.S. experienced losses for the year for the first time since 2008. Defaults hit a total of 113, driven largely by stress
in the commodities sectors. And while the Fed raised rates as a nod to the economy's perceived strength, these global
headwinds persisted into the new year as well.
Quarterly Trends
On a year-over-year basis, the number of rated defaults doubled in every quarter of 2015 compared with the same
quarter in 2014, except for the third (see chart 14). In every quarter, the energy and natural resources sector led the
way, ultimately accounting for 39% of the 2015 total. In terms of the amount of affected debt, 2015 generally saw
smaller defaulters, with no one quarter standing out as having an exceptional amount of affected debt (see chart 15). In
many cases, a particular year will be punctuated by one or two large defaulters (see table 5), but in 2015 the main
driver of quarterly debt amounts affected was simply the total number of defaults. For example, at the low end, the first
quarter had an average amount of affected debt across all defaulters of about $810 million. At the high end, the second
quarter's average was $1.05 billion.

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Chart 14

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Chart 15
The 12-month-trailing and annual default rates have become industry standards, but default rates measured over
shorter time frames give a more immediate picture of credit market conditions. Based on quarterly intervals of
measurement (nonannualized), default activity in 2015 was higher across the major regions in every quarter relative to
the end of 2014 (see chart 16). The only exception to this was the third-quarter default rate in Europe. Additionally
(and again with the exception of Europe), quarterly default rates rose over the course of the year. If these levels of
actual default events continue, they will likely lead to even higher default rates in the early part of 2016. By the end of
the year, the quarterly default rates among the four major regions finished at 0.84%, 0.88%, 0.64%, and 0.98% for the
global, U.S., European, and emerging markets regions, respectively.

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Chart 16
Lower Ratings Are Consistent With Higher Default Vulnerability

On average, there is a negative correlation between the initial rating on a firm and its time to default, if that occurs. For
example, for the entire pool of defaulters (1981-2015), the average times to default for issuers that were originally rated
in the 'A' and 'B' categories were 12.9 years and 4.7 years, respectively, from initial rating (or from Dec. 31, 1980, the
start date of the study), whereas issuers in the 'CCC' rating category or lower had an average time to default of only 2.3
years. In cases where an issuer emerges from a prior default (including distressed exchanges), we consider it a separate
entity, and the original rating is the first after the default event. Table 10 displays the median, average, and standard
deviations for the time to default from the original rating. The differences between each rating category's minimum
and maximum times to default are in the last column under "range." Table 11 presents the average and median times
to default from each rating category for all subsequent ratings received. In both cases, the standard deviation of the
times to default generally shrink progressively as the rating gets lower. Generally speaking, the average time to default
for each rating category is longer when based on the initial rating on an issuer than it is based on ratings reached later
in the issuer's history, particularly for speculative-grade ratings.

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Table 10
Time To Default From Original Rating For Global Corporate Defaulters (1981-2015)
Original Average years from Median years from Standard deviation of years
rating Defaults original rating* original rating from original rating Range
AAA 8 18.0 18.5 11.4 23.0
AA 30 14.9 12.8 8.5 27.3
A 93 12.9 10.8 7.9 32.6
BBB 197 8.5 7.0 5.9 30.7
BB 568 6.5 5.0 5.1 33.9
B 1,314 4.7 3.5 4.0 30.5
CCC/C 204 2.3 1.3 2.8 17.4
Total 2,414 5.7 4.0 5.3 34.2
*Or Dec. 31, 1980, whichever is later. Sources: Standard & Poor’s Global Fixed Income Research and Standard & Poor’s CreditPro®.
Table 11
Time To Default From Post-Original Ratings For Global Corporate Defaulters (1981-2015)
Average years from rating Median years from rating Standard deviation of years from rating
Rating category category category
AAA 23.7 23.3 8.2
AA 13.5 15.2 8.3
A 10.5 9.0 7.5
BBB 7.6 6.0 6.4
BB 5.3 3.7 5.1
B 2.8 1.6 3.4
CCC/C 0.8 0.3 1.5
NR 4.6 2.7 4.9
Total 3.1 1.2 4.5
Table 12 shows the cumulative distribution of defaulters by timeline of default count based on the original rating. The
first row is the rating distribution of defaults occurring within 12 months of the original rating. The second row is the
distribution of the cumulative count of defaults occurring within three years of the original rating. In line with
expectations, the majority (90.6%) of companies that defaulted within one year of the original rating are from the
lowest speculative-grade rating categories (see table 12). For example, of the 170 companies that defaulted within 12
months of having been rated, 154 were originally in the 'B' category ('B+', 'B', and 'B-') or lower. Only when looking at
longer time frames do companies with higher original ratings surface among the defaulters. For example, of all the
companies that defaulted during 1981-2015, only two entities rated 'AAA' at inception defaulted within seven years.
Throughout the 35-year span, only eight companies initially rated 'AAA' have ever defaulted. These were Macy's Inc.,
Ally Financial Inc., Ambac Assurance Corp., Mutual Benefit Life Insurance Co., Executive Life Insurance Co. CA,
Confederation Life Insurance Co., Motors Liquidation Co. (formerly known as General Motors Corp.), and Eastman
Kodak Co.

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Table 12
Cumulative Defaulters By Time Horizon Among Global Corporates, From Original Rating (1981-2015)
Number of issuers AAA AA A BBB BB B CCC/C Total
Defaulting within:
One year 3 13 73 81 170
Three years 1 6 28 136 535 155 861
Five years 4 13 68 281 885 183 1,434
Seven years 2 7 27 99 373 1,069 192 1,769
Total 8 30 93 197 568 1,314 204 2,414
Percent of total defaults per time frame

One year 0.0 0.0 0.0 1.8 7.6 42.9 47.6
Three years 0.0 0.1 0.7 3.3 15.8 62.1 18.0
Five years 0.0 0.3 0.9 4.7 19.6 61.7 12.8
Seven years 0.1 0.4 1.5 5.6 21.1 60.4 10.9
Total 0.3 1.2 3.9 8.2 23.5 54.4 8.5
*Or Dec. 31, 1980, whichever is later. Sources: Standard & Poor's Global Fixed Income Research and Standard & Poor's CreditPro®.
Table 13 shows the cumulative defaults over various time horizons from all ratings received subsequent to initial
ratings. Each issuer is likely to be captured multiple times, in line with its migration from one rating to another, so the
total count in table 13 is different from that in table 12. Ten companies rated 'A' at any point in their lifetimes defaulted
within one year of receiving this rating. In table 13, the times to default are from the date that each entity received
each unique rating in its path to default. In contrast, table 21 reports transition to default rates using the static-pool
methodology, which calculates movements to default from the beginning of each static-pool year. This usually leads to
shorter time frames from which to calculate default statistics. Data provided in table 13 also differ from default rates in
table 24 owing to the use of the static-pool methodology. For more information on methodologies and definitions,
please see Appendix I.
Table 13
Cumulative Defaulters By Time Horizon Among Global Corporates, From Post-Original Ratings (1981-2015)
Number of
issuers AAA AA A BBB BB B CCC/C NR Total
Defaulting within:
One year 10 64 168 939 2,056 128 3,365
Three years 7 40 138 408 1,766 2,472 298 5,129
Five years 9 61 191 564 2,132 2,567 384 5,908
Seven years 14 74 249 686 2,311 2,601 443 6,378
Total 3 45 199 446 948 2,541 2,634 566 7,382
Percent of total defaults per time frame

One year 0.0 0.0 0.3 1.9 5.0 27.9 61.1 3.8
Three years 0.0 0.1 0.8 2.7 8.0 34.4 48.2 5.8
Five years 0.0 0.2 1.0 3.2 9.5 36.1 43.4 6.5
Seven years 0.0 0.2 1.2 3.9 10.8 36.2 40.8 6.9

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Table 13
Cumulative Defaulters By Time Horizon Among Global Corporates, From Post-Original Ratings
(1981-2015) (cont.)
Number of
issuers AAA AA A BBB BB B CCC/C NR Total
Total 0.0 0.6 2.7 6.0 12.8 34.4 35.7 7.7
Defaults are disproportionately from low rating categories, even during times of heightened stress (see table 14). Over
longer time horizons, the same is true. For example, 219 defaults were recorded in the five-year pool that began in
January 2011, of which 216 were rated speculative grade on Jan. 1, 2011. (See table 15 for the three publicly rated
investment-grade defaults during this time period.) Among nonfinancial entities, the lower the rating, the higher the
number of defaults and the lower the survival rates. Among financials, ratings are concentrated in investment grade,
and the speculative-grade category accounts for no more than 24.7% of all ratings in any of these three pools. Despite
this, 12 defaults have come from the 2015 pool thus far, though those were from the lowest rating categories (see table
14).
Table 14
Defaults And Survivor Rates In Latest One-Year, Three-Year, And Five-Year Pools
--Latest one-year-- --Latest three-year-- --Latest five-year--
Number of Number of Number of

Number of defaults Number of defaults Number of defaults
ratings as through ratings as through ratings as through
of December Non-default of December Non-default of December Non-default
Rating 1/1/2015 2015 rate (%) 1/1/2013 2015 rate (%) 1/1/2011 2015 rate (%)
Global
AAA 15 0 100.0 21 0 100.0 52 0 100.0
AA 341 0 100.0 312 0 100.0 353 0 100.0
A 1,333 0 100.0 1,265 0 100.0 1,352 1 99.9
BBB 1,796 0 100.0 1,647 0 100.0 1,469 2 99.9
BB 1,238 2 99.8 1,050 9 99.1 946 30 96.8
B 2,012 48 97.6 1,594 100 93.7 1,323 135 89.8
CCC/C 171 44 74.3 152 62 59.2 134 51 61.9
Nonfinancials
AAA 11 0 100.0 13 0 100.0 14 0 100.0
AA 95 0 100.0 82 0 100.0 90 0 100.0
A 547 0 100.0 520 0 100.0 547 1 99.8
BBB 1,247 0 100.0 1,108 0 100.0 1,005 0 100.0
BB 982 2 99.8 813 7 99.1 752 22 97.1
B 1,774 42 97.6 1,408 93 93.4 1,170 122 89.6
CCC/C 145 38 73.8 133 56 57.9 117 47 59.8
Financials
AAA 4 0 100.0 8 0 100.0 38 0 100.0
AA 246 0 100.0 230 0 100.0 263 0 100.0
A 786 0 100.0 745 0 100.0 805 0 100.0

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Table 14
Defaults And Survivor Rates In Latest One-Year, Three-Year, And Five-Year Pools (cont.)
--Latest one-year-- --Latest three-year-- --Latest five-year--
Number of Number of Number of

Number of defaults Number of defaults Number of defaults
ratings as through ratings as through ratings as through
of December Non-default of December Non-default of December Non-default
Rating 1/1/2015 2015 rate (%) 1/1/2013 2015 rate (%) 1/1/2011 2015 rate (%)
BBB 549 0 100.0 539 0 100.0 464 2 99.6
BB 256 0 100.0 237 2 99.2 194 8 95.9
B 238 6 97.5 186 7 96.2 153 13 91.5
CCC/C 26 6 76.9 19 6 68.4 17 4 76.5
Note: The totals included may differ from the counts in table 1 because defaults that are not rated at the beginning of the pool year are
excluded. Sources: Standard & Poor's Global Fixed Income Research and Standard & Poor's CreditPro®.
Table 15
Investment-Grade Defaults In The Five-Year 2011 Static Pool
Rating one Rating three
Company year prior years prior to First Date of first Year of
name Country Industry Default date to default default rating rating default
MF Global U.S. Financial institutions 10/31/2011 BBB- 11/24/2010 BBB+ 5/31/2007 2011
Holdings Ltd.
Republic U.S. Insurance 1/26/2012 CC 10/28/2011 AA 3/28/1983 2012
Mortgage
Insurance Co.
Sharp Corp. Japan High 6/30/2015 CCC- 5/15/2015 A 11/20/2002 2015
tech/computers/office
equipment
Note: Excludes confidentially rated defaults. Sources: Standard & Poor's Global Fixed Income Research and Standard & Poor's CreditPro®.
Since 1981, the 'B' rating category ('B+', 'B', and 'B-') has accounted for 1,314 defaulters (54.4% of the total, from initial
rating), more than double the number of entities in the 'BB' category (see tables 10 and 12). Given the historical track
record, monitoring the trends in new ratings assigned could prove useful in anticipating future default activity based on
the notion that years characterized by high numbers of new ratings of 'B-' or lower will likely be followed by increased
default risk (within this report, issuers that reemerge from default and receive a subsequent rating are treated as new
issuers). Chart 17 plots the proportion of all new speculative-grade ratings 'B-' or lower in the U.S. against the year-end
U.S. speculative-grade default rate. As coincident indicators, broad movements in the two series generally mirror each
other throughout most of their shared history--uncannily so in the 2009 spike in the default rate. However, in the
relatively benign period since then, the two series have diverged somewhat, similar to the period from 2004-2007.

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Chart 17
Industry Variations
For the most part, default rates across both nonfinancial and financial companies increased in 2015 relative to the prior
year, and they are nearing their long-term averages (see table 16). Across various time frames, default rates are, on
average, always higher for nonfinancial companies than they are for financial companies. In 2015, financial companies
accounted for 13.3% of total defaults globally. This is a higher proportion of the annual total than is typical. It is higher
than both the 35-year total (10.9%) and that seen in 2014 (10%). Default rates across various time horizons are also
lower in the past two years relative to long-term averages. This is the case even at the 10-year horizon, reflecting
extended periods of lower-than-average default rates across these broad industrial classifications.
Table 16
Cumulative Global Corporate Default Rates By Sector (%)
Sector 2015 2014 Average (1981-2015) Median Standard deviation Minimum Maximum
Financial institutions
One-year 0.86 0.24 0.66 0.30 0.75 0.00 2.80
Three-year 1.21 0.79 1.92 1.25 1.69 0.00 6.52

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Table 16
Cumulative Global Corporate Default Rates By Sector (%) (cont.)
Sector 2015 2014 Average (1981-2015) Median Standard deviation Minimum Maximum
10-year 3.63 2.71 4.81 4.15 2.67 1.66 10.12
Insurance
One-year 0.12 0.00 0.54 0.27 0.93 0.00 4.65
Three-year 0.12 0.13 1.66 1.09 1.65 0.12 6.98
10-year 2.15 2.18 5.29 4.56 2.99 2.15 14.29
All financials
One-year 0.57 0.15 0.59 0.43 0.56 0.00 2.07
Three-year 0.76 0.52 1.78 1.86 1.23 0.18 4.97
10-year 3.03 2.50 4.98 4.35 2.35 2.40 8.87
All nonfinancials
One-year 1.71 0.94 1.80 1.43 1.35 0.16 5.72
Three-year 3.83 3.59 5.11 3.93 2.99 1.88 12.46
10-year 9.50 8.18 11.38 10.32 3.35 6.98 19.37
Over the long term, cyclicality has been more pronounced in nonfinancial sectors than in financial sectors, which is as
we would expect considering the differences in their rating profiles (see chart 18). Financial companies were more
likely to possess an initial rating in the investment-grade category, while nonfinancials companies were more likely to
initially have speculative-grade ratings. Over the 35 years this study covers, 72.6% of financial entities had initial
investment-grade ratings, while only 32.7% of nonfinancials did. This helps to explain the resemblance between the
annual default rates of nonfinancial entities and those of the speculative-grade universe as a whole. This certainly
contributes to the vast differences between cumulative default rates across financial and nonfinancial sectors (see table
16). For example, at the end of 2015, the one-year default rate among all financial entities was 0.57%, compared with
1.71% for all nonfinancials. The gap is even wider over longer time horizons, such as three years and 10 years (see
chart 19).

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Chart 18

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Chart 19
Of the 2,414 defaults recorded globally over the long term, six sectors displayed an average time to default that is
lower than the overall average of 5.7 years. These sectors are energy and natural resources, financial institutions, high
technology/computers/office equipment, leisure time/media, real estate, and telecommunications (see table 17).
Using the median rather than the mean adds the transportation sector to the list.
Table 17
Time To Default From Original Rating* Grouped By Industry (%)
Median Average Median Standard
Median original years from years from deviation of
original rating rating original original years from Range
(defaulters) (industry) Defaults rating* rating original rating (years)
Aerospace/automotive/capital B+ BB- 353 6.4 4.5 5.6 28.4
goods/metal
Consumer/service sector B+ B+ 448 6.3 4.6 5.4 34.1
Energy and natural resources B BB- 203 4.1 2.9 3.8 23.0
Financial Institutions BB- BBB 191 5.5 3.7 5.8 28.6
Forest and building B+ BB- 153 6.4 4.7 5.2 27.9
products/homebuilders
Health care/chemicals B+ B+ 142 5.8 4.1 5.1 28.3

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Table 17
Time To Default From Original Rating* Grouped By Industry (%) (cont.)
Median Average Median Standard
Median original years from years from deviation of
original rating rating original original years from Range
(defaulters) (industry) Defaults rating* rating original rating (years)
High B+ B+ 81 5.3 3.8 4.7 28.6
technology/computers/office
equipment
Insurance A A 72 8.0 6.6 6.4 28.9
Leisure time/media B+ B+ 348 5.6 4.0 5.1 34.2
Real estate BB- BBB- 43 3.7 2.8 2.8 10.9
Telecommunications B B+ 167 3.9 3.1 3.0 21.5
Transportation B+ BB+ 137 6.1 3.8 6.1 30.9
Utility BB+ BBB+ 76 6.3 4.1 6.5 30.6
Total B+ BB 2,414 5.7 4.0 5.3 34.2
*Or Dec. 31, 1980, whichever is later. Sources: Standard & Poor's Global Fixed Income Research and Standard & Poor's CreditPro®.
Table 18
Time To Default From Post-Original Ratings, Grouped By Industry (%)
Average years to Median years to Standard deviation of years to
default default default
Aerospace/automotive/capital goods/metal 3.7 1.5 5.0
Consumer/service sector 3.4 1.6 4.5
Energy and natural resources 2.2 1.0 3.4
Financial Institutions 3.0 1.0 4.7
Forest and building products/homebuilders 2.9 1.4 3.9
Health care/chemicals 2.9 1.3 4.1
High technology/computers/office equipment 3.9 2.0 5.2
Insurance 3.1 1.8 3.8
Leisure time/media 3.0 1.2 4.4
Real estate 1.4 0.8 1.7
Telecommunications 1.6 0.6 2.7
Transportation 4.4 1.7 6.0
Utility 3.1 0.7 5.3
Total 3.1 1.2 4.5
Sources: Standard & Poor’s Global Fixed Income Research and Standard & Poor’s CreditPro®.
Eight industries had default rates in 2015 that were higher than their comparable 2014 rates, with an average increase
of 1.33% (see table 19). Meanwhile, five other sectors had lower default rates in 2015 relative to 2014, with a more
modest average decrease of 0.5%. Not surprisingly, the largest increase was in the energy/natural resources sector,
with a default rate of 6.5% in 2015, from 2.24 in 2014. Excluding this sector, the average increase among industries
with higher default rates in 2015 was 0.9%. While the overall default rate increased in 2015, the energy and natural
resources sector – particularly the oil and gas-related industry – has been the main driver of this increase. Also, most
sectors' default rates are still below their long-term averages (only four are above their long-term averages). Among
those four, the energy and natural resources sector had a default rate in 2015 that was 4.3% higher than the average.

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Following this is financial institutions, which had a 2015 default rate only two-tenths of a percentage point higher.
Table 19
Global Corporate Default Rates By Industry (%)
Weighted average Standard
2015 2014 (1981-2015) Median deviation Minimum Maximum
Aerospace/automotive/capital 1.00 0.36 2.19 1.31 2.08 0.00 9.39
goods/metal
Consumer/service sector 2.11 1.03 2.28 1.63 1.62 0.00 6.27
Energy and natural resources 6.53 2.24 2.19 1.44 2.21 0.00 10.00
Financial Institutions 0.86 0.24 0.66 0.30 0.75 0.00 2.80
Forest and building 2.73 0.00 2.67 1.49 2.96 0.00 14.43
products/homebuilders
Health care/chemicals 0.42 0.69 1.44 0.84 1.34 0.00 4.86
High technology/computers/office 0.66 1.45 1.16 0.92 1.48 0.00 4.82
equipment
Insurance 0.12 0.00 0.34 0.27 0.93 0.00 4.65
Leisure time/media 1.66 2.33 3.54 2.14 3.36 0.00 16.87
Real estate 0.81 0.00 0.80 0.00 2.82 0.00 12.00
Telecommunications 0.00 0.45 2.65 0.52 3.96 0.00 18.43
Transportation 1.15 0.83 2.10 1.86 1.66 0.00 6.00
Utility 0.00 0.33 0.45 0.17 0.78 0.00 4.26
Note: Includes investment-grade and speculative-grade entities. Sources: Standard & Poor's Global Fixed Income Research and Standard &
Poor's CreditPro®.
When comparing default rates across sectors, we note some key differences between the various industries. Some of
the variation in default rates between sectors stems from overall sample size differences as well as differentiation in the
rating mix across industries. For example, the leisure/media sector has a much higher representation of
speculative-grade ratings than the financial institutions or insurance sectors (see chart 20). What is most compelling is
that besides utilities, all other sectors now have a higher portion of speculative-grade ratings than they did 10 years
ago, and speculative-grade-rated issuers account for more than 50% of total issuers in nine of the 13 industries, with
the majority of these industries' proportions exceeding 60%.

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Chart 20
Speculative-Grade Ratings Now Dominate

History suggests that growth in speculative-grade ratings is usually a precursor to a period of increased defaults. The
surge in speculative-grade originations beginning in 2002 in the U.S.--when the high-yield market had the most
depth--supports this notion (see chart 23). By contrast, speculative-grade rating originations in Europe have been more
subdued, which is attributable to much of the leveraged activity having migrated to the private credit estimate market,
which is not included in this study or the CreditPro® database (see chart 24). However, the growth of
speculative-grade ratings in Europe has picked up substantially since 2009 as a result of a slight increase in the rate of
downgrades and a marked increase in the number of initial speculative-grade ratings for new issuers. The number of
new issuers assigned speculative-grade ratings in Europe in 2015 was 124, which is less than the 168 in 2014 and 175
in 2013. However, the overall level of new speculative-grade issuer ratings also fell in 2015 by about 33% from 2014. In
the U.S., S&P Global Ratings rated 54.9% of issuers speculative grade as of Dec. 31, 2015 (while in Europe, the
comparable amount is just under 41.6%).
On a trailing 12-month basis, the global speculative-grade default rate hit a recent peak of 10.4% in November 2009
(see chart 21). Risk tolerance among lenders has increased since the global economic and financial downturn, as

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demonstrated by an increase in the share of new issuers rated speculative grade over the past six years, hitting a high
of 80% in 2013. This reversed somewhat in 2015, to 69%. The more difficult lending environment in 2015--particularly
in the second half of the year--contributed to a reduction in the total amount of initial speculative-grade issuer ratings
to 455 from 682 in 2014. Meanwhile, there was also somewhat of a decline in the amount of initial investment-grade
issuer ratings, to 203 in 2015 from 231 in 2014.
Chart 21

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Chart 22

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Chart 23

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Chart 24
Transition Tables And Cumulative Default Rates

An analysis of transition rates over the four quarters ended December 2015 suggests that ratings behavior continues to
exhibit consistency with long-term trends, showing a negative correspondence between ratings and observed
frequency of default. Investment-grade-rated issuers--globally as well as in the U.S. and Europe--tend to exhibit greater
rating stability (as measured by the frequency of rating transition) than their speculative-grade counterparts (see table
20). For instance, 89.9% of issuers rated 'A' at the beginning of 2015 were still rated 'A' by Dec. 31, 2015, whereas the
comparable share for issuers rated 'B' was only 76%. The same relationship holds even when analyzing the transition
rates by regions.
Over the past few years, events such as the downgrade of the U.S. in 2011 and the lingering effects of the financial
crisis on European sovereigns have led to the downgrades of many of the higher-rated financial institutions and
insurance companies. Meanwhile, among nonfinancial entities, there has been a more gradual trend of increased
willingness to operate with higher leverage in order to expand businesses or finance acquisitions. These factors,
combined with a growing tolerance by asset managers to invest in lower-quality companies, has led to a diminished
number of 'AAA' rated companies over time. For example, at the start of 2008, 'AAA' rated issuers totaled 89 globally.

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Since then, that number fell to 16 at the start of 2016. By comparison, the largest rating category--the 'BBB'
category--had more than 1,400 issuers at the start of 2008 and roughly 1,800 at the start of 2016. Because of the
extremely small size of the 'AAA' rating category, the downgrade of even one issuer will have a large effect on this
segment's stability rate. However, in 2015, there were no downgrades among the 'AAA' category (see table 20). In fact,
one Dutch issuer (Nederlandse Waterschapsbank N.V.) joined the ranks of the 'AAA' category on Nov. 24, 2015. This
was the first time since December 2010 that an issuer was upgraded to the 'AAA' category.
Over the long term (1981-2015), heightened ratings stability is broadly consistent with higher ratings (see table 21). A
key observation when analyzing transition matrices that present averages computed over multiple static pools is that
the standard deviations associated with each transition point in the matrix are large relative to the averages (outside of
stability rates).
Table 20
2015 One-Year Corporate Transition Rates By Region (%)
From/to AAA AA A BBB BB B CCC/C D NR
Global
AAA 100.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
AA 0.29 93.26 4.40 0.00 0.00 0.00 0.00 0.00 2.05
A 0.00 1.43 89.87 5.48 0.00 0.00 0.00 0.00 3.23
BBB 0.00 0.06 3.12 85.52 4.90 0.00 0.00 0.00 6.40
BB 0.00 0.00 0.00 3.63 79.97 6.87 0.24 0.16 9.13
B 0.00 0.00 0.00 0.15 3.58 76.04 4.57 2.39 13.27
CCC/C 0.00 0.00 0.00 0.00 0.00 5.85 49.71 25.73 18.71
U.S.
AAA 100.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
AA 0.00 94.16 2.60 0.00 0.00 0.00 0.00 0.00 3.25
A 0.00 0.57 91.30 5.48 0.00 0.00 0.00 0.00 2.65
BBB 0.00 0.13 3.47 89.20 1.80 0.00 0.00 0.00 5.40
BB 0.00 0.00 0.00 3.38 80.96 6.94 0.36 0.18 8.19
B 0.00 0.00 0.00 0.17 2.49 77.18 5.39 2.41 12.37
CCC/C 0.00 0.00 0.00 0.00 0.00 2.74 49.32 30.14 17.81
Europe
AAA 100.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
AA 1.00 96.00 1.00 0.00 0.00 0.00 0.00 0.00 2.00
A 0.00 1.73 87.38 7.67 0.00 0.00 0.00 0.00 3.22
BBB 0.00 0.00 3.85 87.64 1.65 0.00 0.00 0.00 6.87
BB 0.00 0.00 0.00 6.25 74.52 7.69 0.00 0.00 11.54
B 0.00 0.00 0.00 0.26 7.07 74.08 3.14 0.79 14.66
CCC/C 0.00 0.00 0.00 0.00 0.00 6.67 40.00 33.33 20.00
Emerging markets
AAA 100.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
AA 0.00 96.88 3.13 0.00 0.00 0.00 0.00 0.00 0.00
A 0.00 4.74 88.95 3.68 0.00 0.00 0.00 0.00 2.63

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Table 20
2015 One-Year Corporate Transition Rates By Region (%) (cont.)
BBB 0.00 0.00 2.59 76.51 14.22 0.00 0.00 0.00 6.68
BB 0.00 0.00 0.00 3.01 80.95 6.52 0.00 0.25 9.27
B 0.00 0.00 0.00 0.00 3.40 74.38 2.47 4.01 15.74
CCC/C 0.00 0.00 0.00 0.00 0.00 10.17 54.24 16.95 18.64
This study--in line with previous default studies--confirms that over the long term (1981-2015), higher ratings are more
stable than lower ratings. 'AAA' rated issuers were still rated 'AAA' one year later 87.1% of the time, and 'CCC'/'C'
ratings remained 'CCC'/'C' 44.2% of the time. These long-term relationships do not change even when default rates
are calculated over longer time horizons (see table 21) or when broken out by region (see table 22). In contrast, the
relationship is slightly more discontinuous when we examine the rating transitions across modifiers (i.e., a plus or
minus after a rating), but these variations are likely a result of sample size variations, and we do not consider them
significant (see table 23). For example, 'AA+' rated issuers were still rated 'AA+' one year later 77.3% of the time, and
'AA' rated issuers were still rated 'AA' one year later 80.1% of the time.
Table 21
Global Corporate Average Transition Rates (1981-2015) (%)
One-year
AAA 87.08 9.00 0.53 0.05 0.08 0.03 0.05 0.00 3.18
(7.14) (7.16) (0.83) (0.25) (0.25) (0.17) (0.35) (0.00) (2.44)
AA 0.53 86.69 8.06 0.53 0.06 0.07 0.02 0.02 4.02
(0.52) (5.32) (4.28) (0.69) (0.20) (0.21) (0.07) (0.08) (1.94)
A 0.03 1.81 87.65 5.39 0.33 0.13 0.02 0.06 4.58
(0.09) (1.02) (3.55) (2.14) (0.39) (0.27) (0.07) (0.11) (1.81)
BBB 0.01 0.11 3.55 85.43 3.82 0.52 0.12 0.19 6.24
(0.04) (0.16) (1.68) (3.80) (1.56) (0.72) (0.23) (0.26) (1.63)
BB 0.01 0.03 0.13 5.08 76.78 6.96 0.64 0.73 9.63
(0.06) (0.09) (0.27) (1.89) (4.47) (3.21) (0.77) (0.87) (2.46)
B 0.00 0.03 0.09 0.21 5.25 74.27 4.39 3.77 11.99
(0.00) (0.09) (0.22) (0.22) (2.07) (4.37) (2.25) (3.37) (2.25)
CCC/C 0.00 0.00 0.14 0.20 0.61 12.84 44.19 26.36 15.66
(0.00) (0.00) (0.46) (0.71) (0.99) (8.25) (9.32) (11.76) (5.49)
Three-year
AAA 65.52 21.93 2.37 0.32 0.19 0.08 0.11 0.13 9.35
(11.57) (12.19) (1.72) (0.76) (0.45) (0.30) (0.42) (0.37) (5.36)
AA 1.24 65.31 18.94 2.17 0.37 0.23 0.03 0.13 11.58
(0.81) (9.06) (6.16) (1.35) (0.51) (0.46) (0.08) (0.19) (4.13)
A 0.06 4.23 68.15 11.89 1.38 0.48 0.10 0.27 13.43
(0.10) (2.07) (6.14) (2.78) (0.99) (0.63) (0.14) (0.28) (3.58)

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Table 21
Global Corporate Average Transition Rates (1981-2015) (%) (cont.)
BBB 0.02 0.31 8.57 64.00 7.05 1.75 0.31 0.95 17.04
(0.07) (0.41) (3.15) (7.00) (2.08) (1.35) (0.39) (0.97) (3.34)
BB 0.01 0.06 0.56 11.42 46.05 11.67 1.30 4.21 24.72
(0.06) (0.14) (0.72) (3.33) (6.83) (2.73) (0.96) (3.58) (4.30)
B 0.00 0.03 0.24 0.88 10.75 41.08 4.56 13.13 29.32
(0.06) (0.12) (0.45) (0.79) (3.20) (5.91) (1.76) (7.83) (4.84)
CCC/C 0.00 0.00 0.15 0.65 1.69 16.67 10.74 41.42 28.68
(0.00) (0.00) (0.55) (1.30) (1.81) (7.13) (6.32) (12.94) (8.87)
Five-year
AAA 49.52 28.22 4.88 0.82 0.25 0.16 0.08 0.35 15.71
(11.96) (13.15) (2.64) (1.54) (0.47) (0.41) (0.28) (0.60) (6.55)
AA 1.53 49.71 25.09 3.81 0.61 0.40 0.05 0.35 18.44
(0.90) (7.45) (4.70) (1.57) (0.63) (0.60) (0.10) (0.38) (4.60)
A 0.08 5.30 54.54 15.13 2.23 0.75 0.16 0.59 21.21
(0.10) (2.34) (6.54) (2.26) (1.06) (0.88) (0.18) (0.42) (4.08)
BBB 0.03 0.49 10.45 50.53 7.64 2.38 0.42 2.03 26.03
(0.08) (0.55) (3.35) (7.39) (1.79) (1.46) (0.40) (1.44) (4.21)
BB 0.01 0.08 1.09 12.83 30.07 11.12 1.34 8.07 35.37
(0.06) (0.19) (1.01) (3.36) (6.21) (2.24) (0.93) (4.87) (4.50)
B 0.02 0.03 0.30 1.67 10.66 24.39 2.92 19.88 40.14
(0.11) (0.10) (0.59) (1.25) (2.83) (5.45) (1.02) (8.87) (5.62)
CCC/C 0.00 0.00 0.13 0.74 2.96 12.28 2.61 46.99 34.28
(0.00) (0.00) (0.52) (1.91) (2.15) (4.77) (3.89) (12.74) (9.48)
Seven-year
AAA 38.69 30.81 7.04 1.52 0.28 0.20 0.11 0.54 20.81
(10.43) (11.65) (2.86) (1.90) (0.51) (0.43) (0.31) (0.75) (6.58)
AA 1.57 38.98 28.16 4.97 0.81 0.41 0.03 0.58 24.49
(0.91) (4.92) (3.80) (1.55) (0.60) (0.51) (0.09) (0.53) (4.47)
A 0.08 5.49 45.09 16.77 2.75 0.89 0.16 1.02 27.74
(0.12) (1.89) (5.83) (1.50) (1.12) (0.95) (0.18) (0.47) (3.78)
BBB 0.04 0.63 10.76 41.49 7.45 2.56 0.41 3.15 33.52
(0.12) (0.61) (2.94) (6.35) (0.89) (1.13) (0.34) (1.60) (3.72)
BB 0.00 0.09 1.46 12.45 21.35 9.76 1.03 11.56 42.30
(0.00) (0.19) (1.11) (3.36) (5.37) (2.29) (0.69) (5.05) (3.80)
B 0.01 0.02 0.41 2.10 8.70 15.28 1.76 24.95 46.78
(0.08) (0.09) (0.62) (1.57) (1.79) (4.18) (0.63) (7.75) (5.30)
CCC/C 0.00 0.00 0.26 0.98 3.14 8.14 1.34 50.31 35.84
(0.00) (0.00) (0.64) (2.29) (1.75) (4.26) (2.15) (12.47) (9.79)
Note: Numbers in parentheses are weighted standard deviations, weighted by the issuer base. Sources: Standard & Poor's Global Fixed Income
Research and Standard & Poor's CreditPro®.

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Table 22
Average One-Year Corporate Transition Rates (1981-2015) (%)
U.S.
AAA 87.31 8.67 0.58 0.04 0.12 0.04 0.04 0.00 3.19
(10.17) (10.34) (1.16) (0.21) (0.37) (0.28) (0.28) (0.00) (2.52)
AA 0.54 86.84 7.63 0.60 0.08 0.11 0.04 0.04 4.12
(0.52) (6.33) (4.64) (0.84) (0.23) (0.29) (0.11) (0.16) (2.48)
A 0.05 1.78 87.67 5.46 0.42 0.16 0.03 0.08 4.35
(0.12) (1.21) (4.06) (2.54) (0.50) (0.34) (0.11) (0.16) (1.85)
BBB 0.01 0.13 3.56 85.87 3.86 0.63 0.11 0.23 5.59
(0.05) (0.18) (2.00) (4.74) (1.79) (0.90) (0.17) (0.32) (2.00)
BB 0.02 0.05 0.18 5.00 76.65 7.81 0.61 0.81 8.86
(0.09) (0.12) (0.30) (2.34) (5.21) (4.00) (0.72) (0.88) (2.66)
B 0.00 0.04 0.12 0.22 4.77 75.27 4.49 3.93 11.17
(0.00) (0.10) (0.25) (0.25) (2.09) (4.77) (2.56) (3.46) (2.42)
CCC/C 0.00 0.00 0.20 0.29 0.73 12.01 44.27 28.21 14.30
(0.00) (0.00) (0.59) (0.86) (1.23) (8.28) (9.10) (11.79) (5.43)
Europe
AAA 82.74 11.23 0.62 0.21 0.00 0.00 0.21 0.00 4.99
(7.68) (8.47) (1.71) (1.23) (0.00) (0.00) (1.02) (0.00) (4.51)
AA 0.30 84.73 10.52 0.60 0.00 0.00 0.00 0.00 3.85
(0.51) (7.18) (6.49) (1.21) (0.00) (0.00) (0.00) (0.00) (1.95)
A 0.01 1.98 86.44 6.19 0.20 0.01 0.00 0.04 5.12
(0.05) (1.44) (4.46) (3.43) (0.37) (0.07) (0.00) (0.10) (1.91)
BBB 0.00 0.11 4.43 83.32 4.07 0.40 0.11 0.09 7.48
(0.00) (0.22) (1.95) (3.55) (2.75) (0.57) (0.31) (0.24) (2.67)
BB 0.00 0.00 0.10 5.44 71.95 7.98 0.46 0.46 13.62
(0.00) (0.00) (0.73) (2.40) (6.54) (3.56) (1.14) (0.96) (4.66)
B 0.00 0.00 0.05 0.43 7.28 70.73 4.19 2.60 14.71
(0.00) (0.00) (0.29) (0.63) (2.92) (7.25) (2.73) (3.60) (5.81)
CCC/C 0.00 0.00 0.00 0.00 0.00 14.49 38.16 28.02 19.32
(0.00) (0.00) (0.00) (0.00) (0.00) (13.07) (18.37) (19.58) (12.40)
Emerging markets
AAA 93.44 3.28 0.00 0.00 0.00 0.00 0.00 0.00 3.28
(18.25) (11.59) (0.00) (0.00) (0.00) (0.00) (0.00) (0.00) (14.89)
AA 1.47 88.24 6.99 0.37 0.00 0.00 0.00 0.00 2.94
(5.84) (13.75) (9.73) (2.17) (0.00) (0.00) (0.00) (0.00) (4.44)
A 0.00 2.08 89.90 4.75 0.43 0.43 0.00 0.05 2.35
(0.00) (1.64) (5.84) (4.58) (0.91) (1.35) (0.00) (0.17) (1.22)
BBB 0.00 0.02 2.79 85.87 4.71 0.48 0.24 0.14 5.74
(0.00) (0.11) (2.50) (6.13) (4.73) (1.47) (1.23) (0.43) (2.13)
BB 0.00 0.00 0.00 4.90 79.72 4.49 0.85 0.69 9.34

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Table 22
Average One-Year Corporate Transition Rates (1981-2015) (%) (cont.)
(0.00) (0.00) (0.00) (2.55) (5.09) (2.44) (2.50) (1.32) (3.75)
B 0.00 0.00 0.00 0.06 6.58 71.85 3.81 3.19 14.52
(0.00) (0.00) (0.00) (0.26) (4.15) (5.66) (3.44) (3.89) (3.37)
CCC/C 0.00 0.00 0.00 0.00 0.36 16.43 47.11 17.51 18.59
(0.00) (0.00) (0.00) (0.00) (0.88) (12.49) (13.84) (16.54) (11.49)
Note: Numbers in parentheses are weighted standard deviations, weighted by the issuer base. For Europe and emerging markets, calculations are
for 1996-2015 due to sample size considerations. Sources: Standard & Poor’s Global Fixed Income Research and Standard & Poor’s CreditPro®.
Table 23
Average One-Year Transition Rates For Global Corporates By Rating Modifier (1981-2015) (%)
From/to AAA AA+ AA AA- A+ A A- BBB+ BBB BBB- BB+ BB BB- B+ B B- D NR
AAA 87.08 5.74 2.56 0.69 0.16 0.24 0.13 0.00 0.05 0.00 0.03 0.05 0.00 0.00 0.03 0.00 0.00 3.18
(7.14) (5.99) (3.30) (1.04) (0.45) (0.56) (0.35) (0.00) (0.25) (0.00) (0.17) (0.19) (0.00) (0.00) (0.17) (0.00) (0.00) (2.44)
AA+ 2.47 77.29 11.64 3.76 0.77 0.41 0.21 0.05 0.10 0.05 0.00 0.00 0.00 0.00 0.00 0.00 0.00 3.24
(3.63) (10.59) (7.19) (4.14) (2.41) (0.85) (0.49) (0.25) (0.69) (0.23) (0.00) (0.00) (0.00) (0.00) (0.00) (0.00) (0.00) (2.97)
AA 0.44 1.30 80.09 8.73 2.89 1.23 0.39 0.41 0.14 0.09 0.05 0.03 0.02 0.02 0.00 0.02 0.02 4.10
(0.51) (1.60) (8.88) (6.15) (2.62) (1.24) (0.66) (0.83) (0.36) (0.24) (0.16) (0.13) (0.10) (0.12) (0.00) (0.09) (0.09) (2.63)
AA- 0.05 0.12 4.00 77.78 10.11 2.42 0.63 0.29 0.17 0.08 0.03 0.00 0.00 0.03 0.09 0.00 0.03 4.18
(0.13) (0.32) (4.38) (7.36) (4.94) (2.64) (0.84) (0.50) (0.46) (0.26) (0.21) (0.00) (0.00) (0.15) (0.39) (0.00) (0.11) (2.08)
A+ 0.00 0.07 0.50 4.64 77.34 9.13 2.31 0.67 0.36 0.09 0.07 0.10 0.01 0.08 0.03 0.00 0.06 4.54
(0.00) (0.20) (0.70) (2.59) (5.45) (3.08) (1.51) (0.66) (0.44) (0.19) (0.17) (0.26) (0.05) (0.20) (0.14) (0.00) (0.15) (1.94)
A 0.04 0.05 0.24 0.47 5.19 77.95 7.08 2.58 0.96 0.30 0.13 0.12 0.08 0.10 0.02 0.00 0.06 4.61
(0.13) (0.14) (0.52) (0.48) (2.04) (5.23) (3.08) (1.72) (0.95) (0.39) (0.21) (0.28) (0.32) (0.35) (0.10) (0.00) (0.12) (2.28)
A- 0.05 0.01 0.07 0.16 0.50 6.70 76.58 7.67 2.31 0.64 0.16 0.16 0.14 0.13 0.03 0.01 0.07 4.57
(0.20) (0.05) (0.16) (0.28) (0.63) (3.32) (5.66) (3.15) (1.52) (0.65) (0.34) (0.36) (0.24) (0.31) (0.08) (0.08) (0.19) (1.94)
BBB+ 0.00 0.01 0.07 0.08 0.24 0.85 7.34 73.99 8.52 1.83 0.42 0.35 0.16 0.19 0.12 0.03 0.12 5.62
(0.00) (0.05) (0.17) (0.19) (0.46) (1.07) (3.05) (5.81) (3.41) (1.48) (0.55) (0.59) (0.23) (0.44) (0.31) (0.10) (0.28) (1.97)
BBB 0.01 0.01 0.05 0.03 0.12 0.36 1.13 7.50 75.04 6.42 1.45 0.68 0.31 0.26 0.13 0.04 0.18 6.21
(0.08) (0.08) (0.14) (0.13) (0.23) (0.71) (1.01) (3.15) (4.53) (2.37) (1.07) (0.61) (0.50) (0.47) (0.40) (0.10) (0.29) (2.07)
BBB- 0.01 0.01 0.02 0.05 0.06 0.17 0.29 1.29 9.22 71.57 5.84 2.22 0.87 0.41 0.27 0.17 0.28 6.99
(0.08) (0.05) (0.06) (0.21) (0.18) (0.41) (0.60) (1.18) (3.26) (5.32) (2.63) (1.55) (0.78) (0.85) (0.49) (0.47) (0.42) (2.33)
BB+ 0.05 0.00 0.00 0.04 0.02 0.11 0.09 0.50 1.94 11.80 63.84 6.91 2.97 1.07 0.68 0.21 0.37 8.96
(0.24) (0.00) (0.00) (0.13) (0.10) (0.41) (0.30) (0.73) (1.93) (4.42) (6.07) (3.01) (2.03) (1.69) (1.23) (0.36) (0.66) (2.93)
BB 0.00 0.00 0.04 0.01 0.00 0.07 0.06 0.20 0.59 2.31 9.80 64.71 7.83 2.30 1.09 0.37 0.62 9.36
(0.00) (0.00) (0.22) (0.07) (0.00) (0.39) (0.23) (0.44) (0.88) (2.24) (4.41) (5.38) (2.79) (1.56) (1.39) (0.60) (0.69) (3.19)
BB- 0.00 0.00 0.00 0.01 0.01 0.01 0.06 0.11 0.26 0.41 1.95 9.38 63.02 8.67 3.17 0.85 1.05 10.27
(0.00) (0.00) (0.00) (0.10) (0.09) (0.08) (0.30) (0.26) (0.46) (0.66) (1.68) (4.02) (5.63) (3.95) (1.68) (0.87) (1.49) (2.68)
B+ 0.00 0.01 0.00 0.03 0.00 0.03 0.07 0.05 0.06 0.12 0.30 1.55 7.94 63.47 8.57 2.56 2.20 11.20
(0.00) (0.06) (0.00) (0.15) (0.00) (0.09) (0.21) (0.14) (0.17) (0.22) (0.36) (1.10) (3.50) (5.59) (3.39) (1.33) (2.07) (2.61)
B 0.00 0.00 0.01 0.01 0.00 0.04 0.05 0.02 0.07 0.04 0.15 0.29 1.35 8.23 60.95 8.42 4.04 12.17
(0.00) (0.00) (0.10) (0.07) (0.00) (0.22) (0.41) (0.08) (0.33) (0.11) (0.40) (0.61) (1.31) (3.31) (7.64) (3.60) (4.48) (2.69)
B- 0.00 0.00 0.00 0.00 0.02 0.04 0.00 0.09 0.07 0.13 0.11 0.18 0.49 2.45 10.73 53.35 7.21 13.64

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Table 23
Average One-Year Transition Rates For Global Corporates By Rating Modifier (1981-2015) (%) (cont.)
From/to AAA AA+ AA AA- A+ A A- BBB+ BBB BBB- BB+ BB BB- B+ B B- D NR
(0.00) (0.00) (0.00) (0.00) (0.33) (0.33) (0.00) (0.36) (0.20) (0.48) (0.49) (0.96) (0.96) (2.38) (5.50) (7.44) (6.59) (4.43)
CCC/C 0.00 0.00 0.00 0.00 0.03 0.00 0.10 0.07 0.07 0.07 0.03 0.17 0.41 1.15 2.78 8.91 26.36 15.66
(0.00) (0.00) (0.00) (0.00) (0.24) (0.00) (0.40) (0.50) (0.34) (0.40) (0.25) (0.54) (0.80) (1.63) (3.21) (5.76) (11.76) (5.49)
Note: Numbers in parentheses are weighted standard deviations, weighted by the issuer base. Sources: Standard & Poor's Global Fixed Income Research
and Standard & Poor's CreditPro®.
Over each time span, lower ratings correspond to higher default rates (see table 24 and chart 25). This also holds true
in every region worldwide (see table 25).
Chart 25
Table 24
Global Corporate Average Cumulative Default Rates (1981-2015) (%)
--Time horizon (years)--
Rating 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15
AAA 0.00 0.03 0.13 0.24 0.35 0.46 0.52 0.61 0.66 0.72 0.76 0.79 0.82 0.89 0.96
AA 0.02 0.06 0.13 0.23 0.34 0.45 0.55 0.63 0.71 0.79 0.87 0.94 1.01 1.08 1.15

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Table 24
Global Corporate Average Cumulative Default Rates (1981-2015) (%) (cont.)
Rating 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15
A 0.06 0.15 0.26 0.40 0.55 0.72 0.92 1.10 1.28 1.48 1.65 1.81 1.97 2.11 2.28
BBB 0.19 0.53 0.91 1.37 1.84 2.30 2.71 3.11 3.50 3.89 4.31 4.66 4.99 5.33 5.68
BB 0.73 2.25 4.07 5.86 7.51 9.03 10.34 11.49 12.53 13.45 14.20 14.85 15.39 15.87 16.39
B 3.77 8.56 12.66 15.82 18.27 20.26 21.89 23.19 24.32 25.37 26.26 26.97 27.61 28.21 28.80
CCC/C 26.36 35.54 40.83 44.05 46.43 47.28 48.24 49.05 49.95 50.60 51.09 51.73 52.57 53.25 53.25
Investment grade 0.10 0.28 0.48 0.73 0.98 1.24 1.49 1.72 1.94 2.17 2.40 2.59 2.77 2.95 3.14
Speculative grade 3.80 7.44 10.60 13.15 15.24 16.94 18.38 19.58 20.65 21.61 22.41 23.08 23.69 24.23 24.75
All rated 1.49 2.94 4.21 5.27 6.17 6.92 7.57 8.12 8.62 9.09 9.49 9.83 10.13 10.41 10.70
The only exceptions occur when the number of defaults is low, or when the underlying population of issuers is very
small--such as among the higher rating categories, at the rating modifier level (see table 26). Investment-grade-rated
issuers seldom default, so the number of defaults among these rating categories is very low. This small sample size can
result in historical default rates that are counterintuitive. This does not imply, however, that 'AAA' rated companies are
more risky than 'AA+' rated companies, but rather that both are very unlikely to default.
Table 25
Average Cumulative Default Rates For Corporates By Region (1981-2015) (%)
Rating 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15
U.S.
AAA 0.00 0.04 0.17 0.29 0.42 0.54 0.59 0.67 0.76 0.86 0.90 0.95 1.00 1.10 1.21
AA 0.04 0.08 0.18 0.32 0.46 0.61 0.76 0.88 0.98 1.09 1.19 1.28 1.37 1.45 1.55
A 0.08 0.21 0.37 0.56 0.75 0.97 1.22 1.45 1.70 1.95 2.18 2.38 2.58 2.75 2.95
BBB 0.23 0.61 1.02 1.54 2.10 2.65 3.15 3.65 4.15 4.64 5.12 5.50 5.86 6.23 6.60
BB 0.81 2.51 4.58 6.60 8.38 10.14 11.61 12.96 14.17 15.27 16.16 16.94 17.60 18.16 18.75
B 3.93 8.99 13.39 16.81 19.50 21.71 23.55 25.01 26.29 27.46 28.44 29.22 29.94 30.57 31.19
CCC/C 28.21 38.67 44.55 48.32 51.13 52.19 53.32 54.15 55.18 55.84 56.47 57.15 57.92 58.54 58.54
Investment 0.12 0.33 0.57 0.88 1.19 1.52 1.83 2.13 2.42 2.72 3.00 3.23 3.45 3.66 3.89
grade
Speculative 4.13 8.18 11.72 14.58 16.90 18.84 20.47 21.84 23.07 24.17 25.08 25.85 26.54 27.13 27.70
grade
All rated 1.76 3.52 5.07 6.37 7.45 8.39 9.18 9.87 10.50 11.08 11.57 11.98 12.35 12.68 13.01
Europe
AAA 0.00 0.00 0.00 0.00 0.00 0.00 0.00
AA 0.00 0.03 0.07 0.14 0.22 0.30 0.34
A 0.04 0.09 0.14 0.20 0.31 0.42 0.55
BBB 0.09 0.25 0.42 0.59 0.71 0.98 1.23
BB 0.46 1.48 2.50 3.21 4.40 5.35 6.30
B 2.60 6.58 10.14 12.72 14.71 15.96 16.45

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Table 25
Average Cumulative Default Rates For Corporates By Region (1981-2015) (%) (cont.)
Rating 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15
CCC/C 28.02 37.51 43.62 48.81 50.46 50.46 51.92
Investment 0.05 0.12 0.20 0.30 0.40 0.54 0.68
grade
Speculative 2.85 5.66 8.05 9.79 11.33 12.35 13.13
grade
All rated 0.66 1.29 1.80 2.18 2.53 2.81 3.05
Emerging markets
AAA 0.00 0.00 0.00 0.00 0.00
AA 0.00 0.00 0.00 0.00 0.00
A 0.05 0.05 0.05 0.05 0.05
BBB 0.14 0.69 1.29 2.02 2.68
BB 0.69 2.11 3.68 5.21 6.40
B 3.19 6.54 8.92 10.69 11.85
CCC/C 17.51 21.35 23.89 24.64 25.45
Investment 0.11 0.46 0.86 1.33 1.76
grade
Speculative 2.84 5.23 7.19 8.77 9.92
grade
All rated 1.66 3.18 4.48 5.60 6.45
Note: Figures for Europe and the emerging markets are calculated for the period 1996-2015 due to sample size considerations. Sources:
Standard & Poor’s Global Fixed Income Research and Standard & Poor’s CreditPro®.
Table 26
Global Corporate Average Cumulative Default Rates By Rating Modifier (1981-2015) (%)
Rating 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15
AAA 0.00 0.03 0.14 0.25 0.35 0.47 0.52 0.61 0.67 0.73 0.76 0.79 0.82 0.89 0.96
AA+ 0.00 0.06 0.06 0.11 0.17 0.23 0.29 0.35 0.41 0.47 0.54 0.61 0.68 0.75 0.82
AA 0.02 0.04 0.09 0.23 0.38 0.50 0.64 0.75 0.85 0.96 1.05 1.11 1.23 1.30 1.38
AA- 0.03 0.10 0.21 0.30 0.38 0.49 0.57 0.62 0.69 0.75 0.82 0.89 0.92 0.97 1.03
A+ 0.06 0.12 0.25 0.40 0.52 0.62 0.75 0.89 1.04 1.21 1.36 1.53 1.73 1.96 2.14
A 0.07 0.18 0.28 0.42 0.57 0.77 0.97 1.16 1.38 1.63 1.84 2.00 2.14 2.22 2.41
A- 0.09 0.22 0.36 0.49 0.68 0.87 1.14 1.34 1.50 1.64 1.78 1.93 2.07 2.21 2.33
BBB+ 0.15 0.41 0.70 0.98 1.26 1.59 1.84 2.11 2.41 2.71 3.00 3.20 3.46 3.80 4.19
BBB 0.23 0.56 0.85 1.26 1.67 2.08 2.46 2.83 3.23 3.63 4.07 4.47 4.79 4.92 5.16
BBB- 0.36 1.06 1.83 2.67 3.44 4.13 4.76 5.35 5.84 6.32 6.87 7.32 7.75 8.37 8.84
BB+ 0.49 1.38 2.48 3.53 4.51 5.49 6.31 6.91 7.65 8.35 8.83 9.41 9.96 10.41 11.03
BB 0.76 2.25 4.25 6.01 7.68 9.01 10.22 11.20 12.12 12.91 13.69 14.37 14.70 14.93 15.27
BB- 1.22 3.70 6.17 8.50 10.52 12.49 14.14 15.73 17.03 18.17 19.04 19.69 20.39 21.09 21.68
B+ 2.51 6.64 10.54 13.76 16.15 18.03 19.74 21.23 22.61 23.87 24.85 25.61 26.34 27.00 27.60
B 5.59 11.77 16.40 19.42 21.61 23.67 25.08 26.08 26.90 27.72 28.42 29.05 29.63 30.19 30.85

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Table 26
Global Corporate Average Cumulative Default Rates By Rating Modifier (1981-2015) (%) (cont.)
Rating 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15
B- 8.74 16.36 21.49 25.01 27.82 29.82 31.46 32.51 33.18 33.76 34.56 35.17 35.44 35.75 36.10
CCC/C 27.22 36.41 41.59 44.64 46.99 47.84 48.79 49.59 50.48 51.12 51.61 52.24 53.08 53.74 53.74
Investment grade 0.12 0.32 0.54 0.80 1.06 1.32 1.56 1.79 2.02 2.25 2.47 2.66 2.84 3.02 3.21
Speculative grade 4.29 8.28 11.61 14.19 16.25 17.93 19.36 20.54 21.60 22.55 23.34 24.00 24.60 25.13 25.65
All rated 1.59 3.12 4.44 5.51 6.40 7.16 7.80 8.35 8.85 9.32 9.72 10.05 10.36 10.64 10.92
Gini Ratios And Lorenz Curves

A quantitative analysis of the performance of S&P Global Ratings' ratings shows that corporate ratings continue to
correlate with the level of default risk across several time horizons. To measure ratings performance, we plotted the
cumulative share of defaulters against the cumulative share of issuers by rating in a Lorenz curve to visually render the
accuracy of its rank ordering (for definition and methodology, refer to Appendix II). Over the long term, the global
average one-year Gini coefficient is 82%, with a three-year of 75.3%, five-year of 71.8%, and seven-year of 69.6% (see
charts 26-29).
Table 27
Corporate Gini Coefficients By Region (1981-2015)
--Time horizon--
Region One-year Three-year Five-year Seven-year
Global
Average 84.82 78.28 73.88 70.36
U.S.
Average 83.84 76.35 71.87 68.21
Europe
Average 92.04 88.68 82.04 73.72
Note: Numbers in parentheses are standard deviations. Average and standard deviation for Europe calculated for the period 1996-2015 due to
sample size considerations. Sources: Standard & Poor’s Global Fixed Income Research and Standard & Poor's CreditPro®.
As expected, the Gini coefficients decline over time because longer time horizons allow for greater opportunity for
credit degradation among higher-rated entities. In the one-year global Lorenz curve, for example, 95.7% of defaults
occurred in the speculative-grade category ('BB+' or lower), while ratings of 'BB+' or lower constituted only 37.5% of

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all corporate ratings (see chart 26). Looking at the seven-year Lorenz curve, speculative-grade issuers constituted
86.6% of defaulters and only 34.5% of the entire sample (see chart 29). If the rank ordering of ratings had little
predictive value, the cumulative share of defaulting corporate entities and the cumulative share of all entities at each
rating would be nearly the same, producing a Gini ratio of zero.
Table 28
Gini Coefficients For Global Corporates By Broad Sector (1981-2015)
--Time horizon--
Sector One-year Three-year Five-year Seven-year
Financial
Average 80.90 73.83 64.96 58.20
Nonfinancial
Average 84.16 77.15 73.11 69.83
Note: Numbers in parentheses are standard deviations. Sources: Standard & Poor's Global Fixed Income Research and Standard & Poor's
CreditPro®.

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Chart 26

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Chart 27

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Chart 28

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Chart 29

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Chart 30
One-year Gini coefficients appear to be broadly cyclical, and negatively related to default rates (see chart 30). Trends
in the one-year Gini ratio emerge during periods of both extremes in the default cycle, which is a reflection of the
natural relationship between the two concepts. In periods of high defaults, there tends to be greater variation in the
distribution of defaults across the ratings spectrum, which reduces the Gini. That is, when default pressure is high,
economic conditions are such that the likelihood of companies from across the rating spectrum suffering a more rapid
deterioration of credit quality is higher. The one-year Gini was 83.6% in 2015--the lowest since 2009, when the Gini
was 83%. 2015 was also the year with the highest number of defaults since 2009 as well.
Appendix I: Methodology And Definitions

This long-term corporate default and rating transition study uses the CreditPro database of long-term local currency
issuer credit ratings. The analysis excludes public information ("pi") ratings and ratings based on the guarantee of
another company or government entity. We also do not include short-term issuer ratings. S&P Global Ratings does not
require all issuers with debt rated to have an issuer credit rating. Therefore, if an issuer has rated debt but not an issuer
credit rating, we assign a proxy rating so that the CreditPro Corporate dataset accurately represents the complete
universe of ratings. The local currency senior unsecured rating is the preferred debt-level rating used for the proxy

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because this rating is usually consistent with the issuer credit rating. In a small number of cases, we used the
subordinated debt rating or the senior secured rating as the proxy.
An S&P Global Ratings' issuer credit rating is a forward-looking opinion about an obligor's overall creditworthiness.
This opinion focuses on the obligor's capacity and willingness to meet its financial commitments as they come due. It
does not apply to any specific financial obligation because it does not take into account the nature and provisions of
any single obligation, its standing in bankruptcy or liquidation, statutory preferences, or the legality and enforceability
of the obligation. Counterparty credit ratings, corporate credit ratings, and sovereign credit ratings are all forms of
issuer credit ratings. Issuer credit ratings can be either long term or short term.
S&P Global Fixed Income Research's ongoing enhancement of the database used to generate this study could lead to
outcomes that differ to some degree from those reported in previous studies. However, this poses no continuity
problem because each study reports statistics back to Dec. 31, 1980. Therefore, each annual default study is
self-contained and effectively supersedes all previous versions.
Issuers included in this study

The study analyzes the rating histories of 18,258 companies that S&P Global Ratings rated as of Dec. 31, 1980, or that
were first rated between that date and Dec. 31, 2015. These include industrials, utilities, financial institutions, and
insurance companies around the world with long-term local currency ratings. Structured finance vehicles, public-sector
issuers, and sovereign issuers are the subject of separate default and transition studies, and we exclude them from this
study.
To avoid overcounting, we exclude subsidiaries with debt that is fully guaranteed by a parent or with default risk that is
considered identical to that of their parents. The latter are companies with obligations that are not legally guaranteed
by a parent but that have operating or financing activities that are so inextricably entwined with those of the parent
that it would be impossible to imagine the default of one and not the other. At times, however, some of these
subsidiaries might not yet have been covered by a parent's guarantee, or the relationship that combines the default risk
of parent and subsidiary might have come to an end or might not have begun. We included such subsidiaries for the
period during which they had distinct and separate risk of default.
Issuers with withdrawn ratings

S&P Global Ratings withdraws ratings when an entity's entire debt is paid off or when the program or programs rated
are terminated and the relevant debt extinguished. For the purposes of this study, a corporate rating may be
withdrawn as a result of mergers and acquisitions. Others are withdrawn because of a lack of cooperation, particularly
when a company is experiencing financial difficulties and refuses to provide all the information needed to continue
surveillance on the ratings, or at the entity's request.
Definition of default
An obligor rated 'SD' (selective default) or 'D' is in payment default on one or more of its financial obligations (rated or
unrated) unless S&P Global Ratings believes that such payments will be made within five business days in the absence
of a stated grace period or within the earlier of the stated grace period or 30 calendar dates. S&P Global Ratings also
lowers a rating to 'D' upon an issuer's filing for bankruptcy or taking a similar action that jeopardizes payments on a
financial obligation. A 'D' rating is assigned when S&P Global Ratings believes that the default will be a general default

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and that the obligor will fail to pay all or substantially all of its obligations as they come due. S&P Global Ratings
assigns an 'SD' rating when it believes that the obligor has selectively defaulted on a specific issue or class of
obligations but will continue to meet its payment obligations on other issues or classes of obligations in a timely
manner. A selective default includes the completion of a distressed exchange offer, whereby one or more financial
obligation is either repurchased for an amount of cash or replaced by other instruments having a total value that is less
than par. 'R' indicates that an obligor is under regulatory supervision owing to its financial condition. This does not
necessarily indicate a default event, but during the period of regulatory supervision, the regulators may have the power
to favor one class of obligations over others or pay some obligations and not others. Preferred stock is not considered
a financial obligation; thus, a missed preferred stock dividend is not normally equated with default.
We deem 'D', 'SD', and 'R' issuer ratings as defaults for the purposes of this study. A default is assumed to take place on
the earliest of: the date S&P Global Ratings revised the rating(s) to 'D', 'SD', or 'R'; the date a debt payment was missed;
the date a distressed exchange offer was announced; or the date the debtor filed for, or was forced into, bankruptcy.
When an issuer defaults, it is not uncommon for S&P Global Ratings to subsequently withdraw the 'D' rating. For the
purposes of this study, if an issuer defaults, we end its rating history at 'D'. If any defaulting entity reemerges from
bankruptcy--or otherwise restructures its defaulted debt instruments, thereby reestablishing regular, timely payment of
all its debts--we reenter this issuer into the database as a new entity. Its rating history after the default event is
included in all calculations as entirely separate from its experience leading up to its earlier default.
Many practitioners use statistics from this default study to estimate "probability of default" and "probability of rating
transition." It is important to note that S&P Global Ratings' ratings do not imply a specific probability of default.
Regional definitions
Within this study, tables and charts are often presented using specific geographic regions. Some countries can be
included in multiple regions, and S&P Global Ratings does not have corporate ratings within every country. The
regions covered in this study are:
U.S. and tax havens: U.S., Bermuda, and the Cayman Islands
Other developed: Australia, Canada, Japan, and New Zealand
Europe: Austria, Belgium, British Virgin Islands, Bulgaria, Channel Islands, Croatia, Cyprus, Czech Republic, Denmark,
Estonia, Finland, France, Germany, Gibraltar, Greece, Guernsey, Hungary, Iceland, Ireland, Isle of Man, Italy, Jersey,
Latvia, Liechtenstein, Lithuania, Luxembourg, Malta, Monaco, Montenegro, Netherlands, Norway Poland, Portugal,
Romania, Slovakia, Slovenia, Spain, Sweden, Switzerland, and the U.K. Prior studies did not include the British Virgin
Islands, Croatia, Gibraltar, Guernsey, Isle of Man, Jersey, Liechtenstein, Monaco, and Montenegro within the
European region.
Emerging markets: Argentina, Armenia, Aruba, Azerbaijan, Bahamas, Bahrain, Bangladesh, Barbados, Belarus, Belize,
Bolivia, Bosnia-Herzegovina, Brazil, Brunei Darussalam, Cambodia, Chile, China, Columbia, Costa Rica, Curacao,
Dominican Republic, Egypt, El Salvador, Fiji, Gabon, Georgia, Ghana, Grenada, Guatemala, Honduras, Hong Kong,
India, Indonesia, Israel, Jamaica, Jordan, Kazakhstan, Korea (Republic of), Kuwait, Lebanon, Liberia, Macao, Malaysia,

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Marshall Islands, Mauritius, Mexico, Mongolia, Morocco, Netherlands Antilles, Nigeria, Oman, Pakistan, Panama,
Papua New Guinea, Paraguay, Peru, Philippines, Qatar, Russian Federation, Saudi Arabia, Singapore, South Africa, Sri
Lanka, Syrian Arab Republic, Taiwan, Thailand, Togo, Trinidad and Tobago, Tunisia, Turkey, Turks and Caicos
Islands, Ukraine, United Arab Emirates, Uruguay, Uzbekistan, Venezuela, and Vietnam
Static pool methodology

S&P Global Fixed Income Research conducts its default studies on the basis of groupings called static pools. For the
purposes of this study, we form static pools by grouping issuers by rating category at the beginning of each year,
quarter, or month that the database covers. Each static pool is followed from that point forward. All companies
included in the study are assigned to one or more static pools. When an issuer defaults, we assign that default back to
all of the static pools to which the issuer belonged.
S&P Global Fixed Income Research uses the static pool methodology to avoid certain pitfalls in estimating default
rates. This is to ensure that default rates account for rating migration and to allow for default rates to be calculated
across multi-period time horizons. Some methods for calculating default and rating transition rates might charge
defaults against only the initial rating on the issuer, ignoring more recent rating changes that supply more current
information. Other methods may calculate default rates using only the most recent year's default and rating data,
which may yield comparatively low default rates during periods of high rating activity because they ignore prior years'
default activity.
The pools are static in the sense that their membership remains constant over time. Each static pool can be interpreted
as a buy-and-hold portfolio. Because errors, if any, are corrected by every new update and because the criteria for
inclusion or exclusion of companies in the default study are subject to minor revisions as time goes by, it is not
possible to compare static pools across different studies. Therefore, every new update revises results back to the same
starting date of Dec. 31, 1980, so as to avoid continuity problems.
Entities that have had ratings withdrawn--that is, revised to 'NR'--are surveilled with the aim of capturing a potential
default. Because static pools only include entities with active ratings as of the beginning date of a given pool, we
exclude companies with withdrawn ratings, as well as those that have defaulted, from subsequent static pools. If an
entity has its rating withdrawn after the start date of a particular static pool and subsequently defaults, we will include
it in that static pool as a default and categorize it into the rating category it was a member of at that time.
For instance, the 1981 static pool consists of all companies rated as of 12:01 a.m. Jan. 1, 1981. Adding those
companies first rated in 1981 to the surviving members of the 1981 static pool forms the 1982 static pool. All rating
changes that took place are reflected in the newly formed 1982 static pool through the ratings on these entities as of
12:01 a.m. Jan. 1, 1982. We used the same method to form static pools for 1983 through 2015. From Jan. 1, 1981, to
Dec. 31, 2015, a total of 16,875 first-time rated organizations were added to form new static pools, while we excluded
2,414 defaulting companies and 8,932 companies with last ratings of 'NR'.
Consider the following example: An issuer is originally rated 'BB' in mid-1986 and is downgraded to 'B' in 1988. This is
followed by a rating withdrawal in 1990 and a default in 1993. We would include this hypothetical company in the
1987 and 1988 pools with the 'BB' rating, which it was rated at the beginning of those years. Likewise, it would be
included in the 1989 and 1990 pools with the 'B' rating. It would not be part of the 1986 pool because it was not rated

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as of the first day of that year, and it would not be included in any pool after the last day of 1990 because the rating
had been withdrawn by then. Yet each of the four pools in which this company was included (1987-1990) would record
its 1993 default at the appropriate time horizon.
Default rate calculation

We calculated annual default rates for each static pool, first in units and later as percentages with respect to the
number of issuers in each rating category. We combined these percentages to obtain cumulative default rates for the
35 years the study covers (see tables 24-26 and 30-32).
Issuer-weighted default rates

All default rates that appear in this study are based on the number of issuers rather than the dollar amounts affected by
defaults or rating changes. Although dollar amounts provide information about the portion of the market that is
affected by defaults or rating changes, issuer-weighted averages are a more useful measure of the performance of
ratings.
Average cumulative default rate calculation

The cumulative default rates in this study average the experience of all static pools by first calculating marginal default
rates for each possible time horizon and for each static pool, weight averaging the marginal default rates conditional on
survival (survivors being nondefaulters), and accumulating the average conditional marginal default rates (see tables
24-26 and 30-32). We calculated conditional default rates by dividing the number of issuers in a static pool that default
at a specific time horizon by the number of issuers that survived (did not default) to that point in time. Weights are
based on the number of issuers in each static pool. Cumulative default rates are one minus the product of the
proportion of survivors (nondefaulters).
For instance, in table 32, the weighted-average first-year default rate for all speculative-grade-rated companies for all
35 pools was 3.8%, meaning that an average of 96.2% survived one year. Similarly, the second- and third-year
conditional marginal averages--shown in the summary statistics section at the bottom portion of the table--were 3.78%
for the first 34 pools (96.22% of those companies that did not default in the first year survived the second year) and
3.42% for the first 33 pools (96.58% of those companies that did not default by the second year survived the third
year), respectively. Multiplying 96.2% by 96.22% results in a 92.56% survival rate to the end of the second year, which
is a two-year average cumulative default rate of 7.44%. Multiplying 92.56% by 96.58% results in an 89.39% survival
rate to the end of the third year, which is a three-year average cumulative default rate of 10.61%.
Transition analysis
Transition rates compare issuer ratings at the beginning of a time period with ratings at the end of the period. To
compute one-year rating transition rates by rating category, we compared the rating on each entity at the end of a
particular year with the rating at the beginning of the same year. An issuer that remained rated for more than one year
was counted as many times as the number of years it was rated. For instance, an issuer continually rated from the
middle of 1984 to the middle of 1991 would appear in the seven consecutive one-year transition matrices from 1985 to
1991. If the rating on the issuer was withdrawn in the middle of 1991, it would be included in the column representing
transitions to 'NR' in the 1991 transition matrix. Similarly, if it defaulted in the middle of 1991, it would be included in
the column representing transitions to 'D' in the 1991 one-year transition matrix.

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All 1981 static pool members still rated on Jan. 1, 2015, had 35 one-year transitions, while companies first rated on
Jan. 1, 2015, had only one. Table 29 displays the summary of one-year transitions in the investment-grade and
speculative-grade rating categories. Each one-year transition matrix displays all rating movements between letter
categories from the beginning of the year through year-end. For each rating listed in the matrix's left-most column,
there are nine ratios listed in the rows, corresponding to the ratings from 'AAA' to 'D', plus an entry for NR (see table
22).
The only ratings considered in these calculations are those on entities at the beginning of each static pool and those at
the end. All rating changes that occur in between are ignored. For example, if an entity was rated 'A' on Jan. 1, 2015,
and was downgraded to 'BBB' in the middle of the year and then later upgraded to 'A' later in the year (with no other
subsequent rating changes), this entity would only be included in the percentage of issuers that began the year as 'A'
that ended the year as 'A'. This also applies to transition matrices that span longer time horizons. If an issuer defaults
or has its rating withdrawn in the middle of the year, then either a 'D' or 'NR' would be considered its rating as of Dec.
31 of that particular year.
Table 29
Summary Of One-Year Global Corporate Rating Transitions
--Investment-grade rating distribution at --Speculative-grade rating distribution at
year-end-- year-end--
Jan. 1 Inv. Spec. Rating Jan. 1 Inv. Spec. Rating

inv. grade grade Defaulted withdrawn spec. grade grade Defaulted withdrawn
Year grade (%) (%)* (%)§ (%) grade (%)† (%) (%) (%)
1981 1,062 97.36 1.41 0.00 1.22 321 4.67 90.03 0.62 4.67
1982 1,091 93.58 3.02 0.18 3.21 340 2.65 80.59 4.41 12.35
1983 1,112 94.15 2.07 0.09 3.69 340 3.24 83.53 2.94 10.29
1984 1,172 95.31 2.30 0.17 2.22 367 4.90 86.92 3.27 4.90
1985 1,209 93.05 3.56 0.00 3.39 417 3.84 85.85 4.32 6.00
1986 1,333 90.10 3.83 0.15 5.93 529 3.02 82.23 5.67 9.07
1987 1,335 90.34 3.00 0.00 6.67 680 3.53 79.41 2.79 14.26
1988 1,349 91.85 2.74 0.00 5.41 754 3.58 79.44 3.85 13.13
1989 1,392 93.10 2.66 0.22 4.02 749 5.21 74.77 4.67 15.35
1990 1,435 94.63 2.09 0.14 3.14 690 3.19 75.07 8.12 13.62
1991 1,472 96.26 1.83 0.14 1.77 588 2.89 78.06 11.05 7.99
1992 1,618 96.42 1.24 0.00 2.35 525 6.29 78.67 6.10 8.95
1993 1,766 92.58 1.53 0.00 5.89 560 4.64 76.79 2.50 16.07
1994 1,847 95.83 0.76 0.05 3.36 711 4.08 85.94 2.11 7.88
1995 2,046 95.50 1.12 0.05 3.32 822 3.77 84.91 3.53 7.79
1996 2,243 94.47 0.62 0.00 4.90 885 4.75 81.02 1.81 12.43
1997 2,493 93.26 1.16 0.08 5.50 997 4.31 80.94 2.01 12.74
1998 2,768 90.39 2.17 0.14 7.30 1,310 2.98 83.89 3.66 9.47
1999 2,875 90.57 1.63 0.17 7.62 1,654 1.63 81.26 5.56 11.55
2000 2,928 91.53 1.78 0.24 6.45 1,752 2.17 83.33 6.22 8.28
2001 3,002 90.57 2.66 0.23 6.53 1,754 1.54 79.25 9.86 9.35
2002 3,107 89.38 3.99 0.42 6.21 1,677 1.79 79.61 9.48 9.12

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Table 29
Summary Of One-Year Global Corporate Rating Transitions (cont.)
--Investment-grade rating distribution at --Speculative-grade rating distribution at
year-end-- year-end--
Jan. 1 Inv. Spec. Rating Jan. 1 Inv. Spec. Rating

inv. grade grade Defaulted withdrawn spec. grade grade Defaulted withdrawn
Year grade (%) (%)* (%)§ (%) grade (%)† (%) (%) (%)
2003 3,020 92.42 2.52 0.10 4.97 1,762 1.53 82.01 5.05 11.41
2004 3,135 94.07 1.02 0.03 4.88 1,882 2.18 84.59 2.02 11.21
2005 3,242 92.81 1.60 0.03 5.55 2,065 3.05 82.28 1.50 13.17
2006 3,264 93.75 1.47 0.00 4.78 2,197 2.18 81.93 1.18 14.70
2007 3,338 90.11 1.74 0.00 8.15 2,308 3.03 81.85 0.91 14.21
2008 3,315 92.19 1.93 0.42 5.46 2,414 2.15 83.35 3.69 10.81
2009 3,348 89.31 3.41 0.33 6.96 2,268 1.28 77.12 9.88 11.73
2010 3,173 94.71 0.95 0.00 4.35 2,137 2.39 84.84 2.99 9.78
2011 3,226 93.27 1.77 0.03 4.93 2,403 2.41 83.98 1.83 11.78
2012 3,237 93.70 1.76 0.00 4.54 2,568 1.91 85.63 2.57 9.89
2013 3,245 94.95 1.36 0.00 3.70 2,796 2.11 85.34 2.29 10.26
2014 3,338 95.66 1.23 0.00 3.12 3,150 1.40 85.75 1.43 11.43
2015 3,485 92.74 2.53 0.00 4.73 3,421 1.40 83.81 2.75 12.04
Weighted 83,021 92.89 1.94 0.10 5.06 49,793 2.45 82.56 3.80 11.19
average
Median 93.26 1.78 0.05 4.88 2.98 82.23 3.27 11.21
Standard 2.15 0.87 0.12 1.70 1.26 3.46 2.75 2.78
deviation
Minimum 89.31 0.62 0.00 1.22 1.28 74.77 0.62 4.67
Maximum 97.36 3.99 0.42 8.15 6.29 90.03 11.05 16.07
*Fallen angels that survived to Jan. 1 of the year after they were downgraded. §Investment-grade defaulters. †Rising stars. Sources: Standard &
Poor’s Global Fixed Income Research and Standard & Poor’s CreditPro®.
Multiyear transitions
Multiyear transitions were also calculated for periods of two up to 20 years. In this case, we compared the rating at the
beginning of the multiyear period with the rating at the end. For example, three-year transition matrices were the result
of comparing ratings at the beginning of the years 1981-2013 with the ratings at the end of the years 1983-2015.
Otherwise, the methodology was identical to that used for single-year transitions.
We calculated average transition matrices on the basis of the multiyear matrices just described. These average
matrices are a true summary, the ratios of which represent the historical incidence of the ratings listed on the first
column, changing to the ones listed on the top row over the course of the multiyear period (see tables 33-40).
Transition matrices that present averages over multiple time horizons are also calculated as issuer-weighted averages.
Rating modifiers
We use rating modifiers (plus and minus signs) to calculate the upgrade and downgrade percentages, as well as the
magnitude of rating changes throughout this study. However, some transition tables may use full rating categories for
practical reasons. In other words, the use of a rating category suggests that transitions from, for example, 'AA' to 'AA-'
or from 'BBB+' to 'BBB-' are not considered to be rating transitions because the rating remained within the rating

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category.
Comparing transition rates with default rates

Rating transition rates may be compared with the marginal and cumulative default rates described in the previous
sections. For example, the one-year default rate column of table 24 is equivalent to column 'D' of the average one-year
transition matrix in table 21, and the cumulative average in summary statistics of the Y1 column in table 32. However,
the two-year default rate column in table 24 is not the same as column 'D' of the average two-year transition matrix in
table 34. This difference results from the different methods of calculating default rates. The default rates in table 34 are
calculated as not conditional on survival, while those in table 24 are average default rates conditional on survival. The
two-year default rates in table 24 are calculated in the same way as those in the cumulative average section for the Y2
column in table 32, while those in the 'D' column of table 34 are equivalent to adding up all the defaults behind the Y2
column's annual default rates in table 32 divided by the sum of all the issuers in table 32 for the years 1981-2014.
The links between transition matrices and average cumulative default rates can be best illustrated through tables
30-32. The default rates in the columns of these tables, associated with each static pool year, are calculated in the
same way as they would be for individual years' one-year transition matrices. Tables 30, 31, and 32 are broken out by
the broadest rating classifications (all rated, investment grade, and speculative grade, respectively). These tables can
also be constructed for each rating category. As an example, the Y2 column of table 32 shows the two-year default
rates (not conditional on survival) for each static pool. These are calculated in the same way as the default column in
table 20, though table 20 shows the one-year default rates for each rating category for 2015 exclusively. In the
summary section at the bottom of tables 30-32, the first row shows the issuer-weighted averages of the marginal
default rates. These marginal averages are then used to calculate the cumulative average default rates in the row
directly beneath them, as explained in the average cumulative default rate section above. These default rates are the
same that appear in table 24 and are average cumulative default rates conditional on survival.
Standard deviations
Many of the tables and charts in this study display averages of default rates, transition rates, and Gini ratios. Often
times these are issuer-weighted averages. Prior studies have shown that fluctuations within default rates and
transitions can vary greatly depending on many circumstances specific to particular time frames, industries, and
geographic regions. As a supplement to many of the averages and time series presented in this study, standard
deviations are also shown to provide a gauge of the dispersion of data behind these averages.
For the transition matrices in tables 21-23 and 33-44, the standard deviation for each cell in a given matrix is a
weighted standard deviation, calculated using the data from each of the underlying cohort years that contribute to the
averages, weighted by that cohort year's issuer base for each rating level. For example, in the average one-year global
transition matrix in table 33, each cell's weighted standard deviation is calculated from the series of that particular cell
in each of the 35 cohorts beginning with the 1981 cohort and ending with the 2015 cohort. The squared difference
between each cohort's transition rate and the weighted average--which is the data point in each cell--is multiplied by
each cohort's weight. These weights are based on each cohort's rating level's contribution to the 35-year total issuer
base for each rating level. We then divide this by the ratio of the total number of non-zero weights minus one and the
total number of non-zero weights.

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Regarding Gini ratios in tables 2, 27, and 28, their standard deviations are derived from the time series of Gini ratios for
all of their constituent annual cohorts. As an example, the standard deviation applied to the seven-year weighted
average global Gini ratio in table 2 (5.14) was calculated from the time series of all available seven-year Gini ratios by
cohort. In this case, these are the seven-year Gini ratios beginning with the 1981 cohort through the 2009 seven-year
cohort. We calculated standard deviations for Gini ratios in this study as the standard deviations of a sample, and not
those of a population.
Time sample
This update limits the reporting of default rates to the 15-year time horizon. However, the data were gathered for 35
years, and all calculations are based on the rating experience of that period. In addition, average default statistics
become less reliable at longer time horizons as the sample size becomes smaller and the cyclical nature of default rates
has a bigger effect on averages.
Table 30
Static Pool Cumulative Global Corporate Default Rates Among All Ratings (1981-2015) (%)
Year Issuers 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15
1981 1,383 0.14 1.37 2.10 2.89 3.54 4.92 5.35 6.15 6.72 7.81 9.47 9.98 10.48 10.56 10.77
1982 1,431 1.19 1.89 2.73 3.42 4.82 5.17 5.94 6.43 7.55 9.36 9.85 10.41 10.48 10.69 10.69
1983 1,452 0.76 1.58 2.41 3.99 4.41 5.44 5.92 7.02 9.02 9.57 10.12 10.19 10.40 10.40 10.47
1984 1,539 0.91 1.95 3.77 4.22 5.26 5.98 7.15 8.84 9.42 10.01 10.07 10.27 10.27 10.40 10.40
1985 1,626 1.11 3.01 3.57 4.92 5.78 7.07 8.92 9.47 9.96 10.02 10.33 10.33 10.46 10.46 10.76
1986 1,862 1.72 2.31 3.60 4.46 5.85 7.73 8.38 8.92 9.08 9.34 9.45 9.67 9.77 10.04 10.42
1987 2,015 0.94 2.38 3.82 5.66 8.19 9.28 10.02 10.27 10.62 10.77 10.97 11.07 11.36 11.81 12.85
1988 2,103 1.38 3.00 5.14 8.18 9.27 10.03 10.27 10.75 10.89 11.17 11.36 11.70 12.36 13.31 14.27
1989 2,141 1.77 4.34 7.85 9.01 9.81 10.14 10.56 10.70 10.98 11.35 11.68 12.28 13.26 14.15 14.62
1990 2,125 2.73 6.12 7.53 8.33 8.66 9.13 9.22 9.60 10.07 10.45 11.20 12.19 13.18 13.69 13.84
1991 2,060 3.25 4.76 5.29 5.63 6.17 6.26 6.60 7.04 7.43 8.11 9.17 10.24 10.73 10.92 11.07
1992 2,143 1.49 2.01 2.33 2.94 3.08 3.41 3.83 4.15 4.85 5.88 6.95 7.37 7.56 7.70 7.84
1993 2,326 0.60 1.07 1.98 2.19 2.58 3.01 3.44 4.21 5.33 6.45 6.88 7.05 7.22 7.44 7.57
1994 2,558 0.63 1.76 2.15 2.62 3.09 3.95 4.96 6.29 7.47 7.97 8.21 8.37 8.64 8.76 9.34
1995 2,868 1.05 1.53 2.02 2.58 3.56 4.57 6.38 7.74 8.33 8.58 8.79 9.03 9.14 9.66 10.50
1996 3,128 0.51 1.09 1.82 2.97 4.00 5.69 7.19 7.86 8.15 8.38 8.60 8.73 9.27 10.10 10.26
1997 3,490 0.63 1.60 2.92 4.33 6.25 7.99 8.91 9.20 9.43 9.71 9.86 10.46 11.29 11.38 11.49
1998 4,078 1.28 3.24 5.22 7.87 10.08 11.30 11.80 12.11 12.43 12.58 13.22 14.15 14.25 14.37 14.49
1999 4,529 2.14 4.66 7.99 10.89 12.36 12.92 13.27 13.62 13.78 14.57 15.72 15.90 16.03 16.18 16.27
2000 4,680 2.48 6.07 9.23 10.92 11.62 12.07 12.44 12.65 13.53 14.91 15.09 15.26 15.41 15.56 15.62
2001 4,756 3.78 7.36 9.31 10.03 10.56 10.91 11.12 11.96 13.44 13.62 13.79 13.96 14.15 14.21 14.47
2002 4,784 3.60 5.62 6.42 6.88 7.23 7.44 8.38 9.97 10.18 10.35 10.54 10.79 10.85 11.10
2003 4,782 1.92 2.72 3.22 3.62 3.83 4.81 6.63 6.90 7.07 7.34 7.63 7.72 7.99
2004 5,017 0.78 1.32 1.71 1.95 2.99 4.98 5.32 5.54 5.84 6.12 6.20 6.48
2005 5,307 0.60 1.02 1.36 2.56 4.86 5.35 5.65 5.99 6.29 6.43 6.78
2006 5,461 0.48 0.88 2.33 5.04 5.66 6.08 6.57 6.94 7.09 7.47
2007 5,646 0.37 2.04 5.30 6.16 6.62 7.23 7.65 7.83 8.29

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Table 30
Static Pool Cumulative Global Corporate Default Rates Among All Ratings (1981-2015) (%) (cont.)
Year Issuers 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15
2008 5,729 1.80 5.59 6.67 7.12 7.85 8.26 8.52 9.04
2009 5,616 4.18 5.34 5.82 6.57 6.98 7.26 7.80
2010 5,310 1.21 1.90 2.75 3.22 3.62 4.18
2011 5,629 0.80 1.94 2.63 3.11 3.89
2012 5,805 1.14 2.07 2.57 3.46
2013 6,041 1.06 1.66 2.83
2014 6,488 0.69 1.97
2015 6,906 1.36
Summary statistics
Marginal 1.49 1.47 1.31 1.11 0.94 0.81 0.70 0.60 0.55 0.51 0.44 0.37 0.34 0.31 0.32
average
Cumulative 1.49 2.94 4.21 5.27 6.17 6.92 7.57 8.12 8.62 9.09 9.49 9.83 10.13 10.41 10.70
average
Standard 1.02 1.78 2.31 2.63 2.75 2.65 2.51 2.47 2.46 2.47 2.48 2.48 2.41 2.40 2.47
deviation
Median 1.14 2.02 3.22 4.39 5.78 6.67 7.65 8.35 9.02 9.47 9.86 10.30 10.48 10.81 10.77
Minimum 0.14 0.88 1.36 1.95 2.58 3.01 3.44 4.15 4.85 5.88 6.20 6.48 7.22 7.44 7.57
Maximum 4.18 7.36 9.31 10.92 12.36 12.92 13.27 13.62 13.78 14.91 15.72 15.90 16.03 16.18 16.27
Table 31
Static Pool Cumulative Global Corporate Default Rates Among All Investment-Grade Ratings (1981-2015) (%)
Year Issuers 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15
1981 1,062 0.00 0.38 0.38 0.47 0.66 1.04 1.32 2.07 2.26 3.01 4.05 4.33 4.52 4.52 4.71
1982 1,091 0.18 0.27 0.37 0.55 1.01 1.28 2.02 2.20 3.02 4.12 4.40 4.67 4.67 4.86 4.86
1983 1,112 0.09 0.36 0.45 0.90 1.08 1.62 1.71 2.52 3.60 3.96 4.23 4.23 4.41 4.41 4.41
1984 1,172 0.17 0.26 0.60 0.77 1.19 1.37 2.05 2.99 3.33 3.58 3.58 3.75 3.75 3.84 3.84
1985 1,209 0.00 0.17 0.25 0.83 0.99 1.74 2.73 3.06 3.31 3.31 3.56 3.56 3.72 3.72 3.89
1986 1,333 0.15 0.15 0.53 0.68 1.20 2.10 2.48 2.63 2.63 2.85 2.85 3.00 3.08 3.23 3.53
1987 1,335 0.00 0.15 0.37 0.82 1.72 2.25 2.40 2.47 2.62 2.62 2.77 2.85 3.00 3.15 3.97
1988 1,349 0.00 0.22 0.37 0.96 1.48 1.63 1.70 1.85 1.85 2.00 2.00 2.15 2.30 2.97 3.71
1989 1,392 0.22 0.36 0.65 1.22 1.36 1.44 1.58 1.58 1.58 1.58 1.80 1.94 2.73 3.38 3.74
1990 1,435 0.14 0.35 0.77 0.98 1.05 1.18 1.18 1.18 1.25 1.53 1.88 2.58 3.14 3.48 3.55
1991 1,472 0.14 0.27 0.41 0.48 0.61 0.61 0.61 0.68 1.02 1.36 2.11 2.65 2.92 2.99 3.06
1992 1,618 0.00 0.06 0.12 0.25 0.25 0.25 0.31 0.56 0.80 1.36 1.85 2.10 2.16 2.29 2.47
1993 1,766 0.00 0.06 0.17 0.17 0.23 0.40 0.74 1.08 1.70 2.32 2.55 2.55 2.66 2.77 2.83
1994 1,847 0.05 0.16 0.16 0.27 0.38 0.81 1.08 1.68 2.27 2.54 2.60 2.65 2.82 2.87 3.25
1995 2,046 0.05 0.05 0.10 0.20 0.68 0.93 1.61 2.20 2.44 2.49 2.54 2.69 2.74 3.13 3.47
1996 2,243 0.00 0.04 0.09 0.49 0.80 1.47 2.01 2.23 2.32 2.36 2.50 2.50 2.90 3.34 3.39
1997 2,493 0.08 0.16 0.48 0.80 1.36 2.09 2.45 2.53 2.57 2.69 2.69 3.09 3.49 3.53 3.65

1627197 | 300000294
Table 31
Static Pool Cumulative Global Corporate Default Rates Among All Investment-Grade Ratings (1981-2015) (%)
(cont.)
Year Issuers 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15
1998 2,768 0.14 0.43 0.79 1.37 2.38 2.82 3.00 3.11 3.18 3.18 3.65 4.19 4.26 4.41 4.55
1999 2,875 0.17 0.49 0.90 1.88 2.33 2.47 2.57 2.71 2.71 3.23 3.90 3.97 4.10 4.28 4.31
2000 2,928 0.24 0.58 1.54 2.02 2.12 2.25 2.39 2.39 2.97 3.65 3.72 3.89 4.03 4.06 4.13
2001 3,002 0.23 1.23 1.67 1.83 2.00 2.13 2.13 2.66 3.40 3.43 3.60 3.76 3.83 3.86 4.06
2002 3,107 0.42 0.77 0.90 1.03 1.09 1.09 1.64 2.29 2.32 2.45 2.61 2.70 2.74 2.93
2003 3,020 0.10 0.20 0.30 0.33 0.33 0.86 1.59 1.62 1.72 1.79 1.89 1.92 2.15
2004 3,135 0.03 0.10 0.13 0.13 0.64 1.28 1.34 1.44 1.53 1.63 1.63 1.85
2005 3,242 0.03 0.06 0.06 0.62 1.20 1.30 1.39 1.48 1.57 1.57 1.79
2006 3,264 0.00 0.00 0.49 0.92 1.01 1.10 1.16 1.26 1.26 1.44
2007 3,338 0.00 0.48 0.93 1.11 1.20 1.29 1.35 1.35 1.50
2008 3,315 0.42 0.81 0.97 1.09 1.18 1.24 1.24 1.39
2009 3,348 0.33 0.45 0.54 0.60 0.63 0.63 0.78
2010 3,173 0.00 0.03 0.06 0.09 0.09 0.25
2011 3,226 0.03 0.06 0.06 0.06 0.09
2012 3,237 0.00 0.00 0.00 0.03
2013 3,245 0.00 0.00 0.00
2014 3,338 0.00 0.00
2015 3,485 0.00
Summary statistics
Marginal 0.10 0.17 0.20 0.25 0.26 0.26 0.25 0.23 0.23 0.23 0.23 0.20 0.19 0.18 0.20
average
Cumulative 0.10 0.28 0.48 0.73 0.98 1.24 1.49 1.72 1.94 2.17 2.40 2.59 2.77 2.95 3.14
average
Standard 0.12 0.27 0.41 0.53 0.62 0.66 0.67 0.71 0.79 0.85 0.87 0.86 0.77 0.67 0.61
deviation
Median 0.05 0.18 0.38 0.72 1.05 1.29 1.61 2.14 2.32 2.52 2.61 2.78 3.08 3.43 3.74
Minimum 0.00 0.00 0.00 0.03 0.09 0.25 0.31 0.56 0.80 1.36 1.63 1.85 2.15 2.29 2.47
Maximum 0.42 1.23 1.67 2.02 2.38 2.82 3.00 3.11 3.60 4.12 4.40 4.67 4.67 4.86 4.86
Table 32
Static Pool Cumulative Global Corporate Default Rates Among All Speculative-Grade Ratings (1981-2015)
(%)
Year Issuers 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15
1981 321 0.62 4.67 7.79 10.90 13.08 17.76 18.69 19.63 21.50 23.68 27.41 28.66 30.22 30.53 30.84
1982 340 4.41 7.06 10.29 12.65 17.06 17.65 18.53 20.00 22.06 26.18 27.35 28.82 29.12 29.41 29.41
1983 340 2.94 5.59 8.82 14.12 15.29 17.94 19.71 21.76 26.76 27.94 29.41 29.71 30.00 30.00 30.29
1984 367 3.27 7.36 13.90 15.26 18.26 20.71 23.43 27.52 28.88 30.52 30.79 31.06 31.06 31.34 31.34
1985 417 4.32 11.27 13.19 16.79 19.66 22.54 26.86 28.06 29.26 29.50 29.98 29.98 29.98 29.98 30.70

1627197 | 300000294
Table 32
(%) (cont.)
Year Issuers 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15
1986 529 5.67 7.75 11.34 13.99 17.58 21.93 23.25 24.76 25.33 25.71 26.09 26.47 26.65 27.22 27.79
1987 680 2.79 6.76 10.59 15.15 20.88 23.09 25.00 25.59 26.32 26.76 27.06 27.21 27.79 28.82 30.29
1988 754 3.85 7.96 13.66 21.09 23.21 25.07 25.60 26.66 27.06 27.59 28.12 28.78 30.37 31.83 33.16
1989 749 4.67 11.75 21.23 23.50 25.50 26.30 27.24 27.64 28.44 29.51 30.04 31.51 32.84 34.18 34.85
1990 690 8.12 18.12 21.59 23.62 24.49 25.65 25.94 27.10 28.41 28.99 30.58 32.17 34.06 34.93 35.22
1991 588 11.05 15.99 17.52 18.54 20.07 20.41 21.60 22.96 23.47 25.00 26.87 29.25 30.27 30.78 31.12
1992 525 6.10 8.00 9.14 11.24 11.81 13.14 14.67 15.24 17.33 19.81 22.67 23.62 24.19 24.38 24.38
1993 560 2.50 4.29 7.68 8.57 10.00 11.25 11.96 14.11 16.79 19.46 20.54 21.25 21.61 22.14 22.50
1994 711 2.11 5.91 7.31 8.72 10.13 12.10 15.05 18.28 20.96 22.08 22.78 23.21 23.77 24.05 25.18
1995 822 3.53 5.23 6.81 8.52 10.71 13.63 18.25 21.53 22.99 23.72 24.33 24.82 25.06 25.91 27.98
1996 885 1.81 3.73 6.21 9.27 12.09 16.38 20.34 22.15 22.94 23.62 24.07 24.52 25.42 27.23 27.68
1997 997 2.01 5.22 9.03 13.14 18.46 22.77 25.08 25.88 26.58 27.28 27.78 28.89 30.79 30.99 31.09
1998 1,310 3.66 9.16 14.58 21.60 26.34 29.24 30.38 31.15 31.98 32.44 33.44 35.19 35.34 35.42 35.50
1999 1,654 5.56 11.91 20.31 26.54 29.81 31.08 31.86 32.59 33.01 34.28 36.28 36.64 36.76 36.88 37.06
2000 1,752 6.22 15.24 22.09 25.80 27.51 28.48 29.22 29.79 31.16 33.73 34.08 34.25 34.42 34.76 34.82
2001 1,754 9.86 17.84 22.41 24.06 25.20 25.94 26.51 27.88 30.62 31.07 31.24 31.41 31.81 31.93 32.27
2002 1,677 9.48 14.61 16.64 17.71 18.60 19.20 20.87 24.21 24.75 24.99 25.22 25.76 25.88 26.24
2003 1,762 5.05 7.04 8.23 9.25 9.82 11.58 15.27 15.95 16.23 16.86 17.48 17.65 17.99
2004 1,882 2.02 3.35 4.36 4.99 6.91 11.16 11.96 12.38 13.02 13.60 13.82 14.19
2005 2,065 1.50 2.52 3.39 5.62 10.61 11.72 12.35 13.08 13.70 14.04 14.62
2006 2,197 1.18 2.18 5.05 11.15 12.56 13.47 14.61 15.38 15.75 16.43
2007 2,308 0.91 4.29 11.61 13.47 14.47 15.81 16.77 17.20 18.11
2008 2,414 3.69 12.14 14.50 15.41 17.03 17.90 18.52 19.55
2009 2,268 9.88 12.57 13.62 15.39 16.36 17.06 18.17
2010 2,137 2.99 4.68 6.74 7.86 8.84 10.01
2011 2,403 1.83 4.45 6.08 7.20 8.99
2012 2,568 2.57 4.67 5.80 7.79
2013 2,796 2.29 3.58 6.12
2014 3,150 1.43 4.06
2015 3,421 2.75
Summary statistics
Marginal 3.80 3.78 3.42 2.86 2.40 2.01 1.73 1.47 1.33 1.21 1.02 0.87 0.78 0.71 0.69
average
Cumulative 3.80 7.44 10.60 13.15 15.24 16.94 18.38 19.58 20.65 21.61 22.41 23.08 23.69 24.23 24.75
average
Standard 2.75 4.54 5.60 6.14 6.30 6.04 5.69 5.73 5.78 5.75 5.62 5.28 4.59 3.95 3.82
deviation
Median 3.27 6.90 10.29 13.73 17.03 17.92 20.34 22.55 24.75 25.94 27.35 28.80 30.00 30.26 30.84
Minimum 0.62 2.18 3.39 4.99 6.91 10.01 11.96 12.38 13.02 13.60 13.82 14.19 17.99 22.14 22.50

1627197 | 300000294
Table 32
(%) (cont.)
Year Issuers 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15
Maximum 11.05 18.12 22.41 26.54 29.81 31.08 31.86 32.59 33.01 34.28 36.28 36.64 36.76 36.88 37.06
Table 33
Average Multiyear Global Corporate Transition Matrix (1981-2015) (%)
--One-year transition rates--

AAA 87.08 9.00 0.53 0.05 0.08 0.03 0.05 0.00 3.18
(7.14) (7.16) (0.83) (0.25) (0.25) (0.17) (0.35) (0.00) (2.44)
AA 0.53 86.69 8.06 0.53 0.06 0.07 0.02 0.02 4.02
(0.52) (5.32) (4.28) (0.69) (0.20) (0.21) (0.07) (0.08) (1.94)
A 0.03 1.81 87.65 5.39 0.33 0.13 0.02 0.06 4.58
(0.09) (1.02) (3.55) (2.14) (0.39) (0.27) (0.07) (0.11) (1.81)
BBB 0.01 0.11 3.55 85.43 3.82 0.52 0.12 0.19 6.24
(0.04) (0.16) (1.68) (3.80) (1.56) (0.72) (0.23) (0.26) (1.63)
BB 0.01 0.03 0.13 5.08 76.78 6.96 0.64 0.73 9.63
(0.06) (0.09) (0.27) (1.89) (4.47) (3.21) (0.77) (0.87) (2.46)
B 0.00 0.03 0.09 0.21 5.25 74.27 4.39 3.77 11.99
(0.00) (0.09) (0.22) (0.22) (2.07) (4.37) (2.25) (3.37) (2.25)
CCC/C 0.00 0.00 0.14 0.20 0.61 12.84 44.19 26.36 15.66
(0.00) (0.00) (0.46) (0.71) (0.99) (8.25) (9.32) (11.76) (5.49)
Note: Numbers in parentheses are weighted standard deviations, weighted by the issuer base. Sources: Standard & Poor’s Global Fixed Income
Research and Standard & Poor’s CreditPro®.
Table 34
--Two-year transition rates--

AAA 75.72 16.05 1.45 0.11 0.19 0.05 0.11 0.03 6.30
(10.08) (10.50) (1.47) (0.31) (0.39) (0.23) (0.41) (0.17) (4.34)
AA 0.93 75.15 14.31 1.34 0.20 0.15 0.02 0.06 7.84
(0.67) (8.13) (6.07) (1.08) (0.34) (0.30) (0.07) (0.12) (3.07)
A 0.04 3.25 77.03 9.25 0.84 0.30 0.05 0.16 9.09
(0.08) (1.64) (5.39) (2.84) (0.78) (0.45) (0.11) (0.20) (2.84)
BBB 0.02 0.20 6.47 73.56 5.93 1.17 0.23 0.55 11.87
(0.08) (0.25) (2.64) (5.93) (1.96) (1.15) (0.33) (0.66) (2.62)
BB 0.01 0.05 0.33 8.94 59.10 10.33 1.12 2.28 17.83
(0.06) (0.11) (0.53) (2.83) (6.21) (2.77) (0.95) (2.31) (3.51)
B 0.00 0.04 0.17 0.49 8.90 55.06 5.02 8.67 21.65
(0.00) (0.12) (0.32) (0.45) (3.11) (5.54) (2.08) (6.19) (3.77)

1627197 | 300000294
Table 34
Average Multiyear Global Corporate Transition Matrix (1981-2015) (%) (cont.)
--Two-year transition rates--

CCC/C 0.00 0.00 0.18 0.58 1.12 16.55 22.01 35.58 23.99
(0.00) (0.00) (0.52) (1.28) (1.23) (8.04) (7.93) (13.29) (7.89)
Table 35
--Three-year transition rates--

AAA 65.52 21.93 2.37 0.32 0.19 0.08 0.11 0.13 9.35
(11.57) (12.19) (1.72) (0.76) (0.45) (0.30) (0.42) (0.37) (5.36)
AA 1.24 65.31 18.94 2.17 0.37 0.23 0.03 0.13 11.58
(0.81) (9.06) (6.16) (1.35) (0.51) (0.46) (0.08) (0.19) (4.13)
A 0.06 4.23 68.15 11.89 1.38 0.48 0.10 0.27 13.43
(0.10) (2.07) (6.14) (2.78) (0.99) (0.63) (0.14) (0.28) (3.58)
BBB 0.02 0.31 8.57 64.00 7.05 1.75 0.31 0.95 17.04
(0.07) (0.41) (3.15) (7.00) (2.08) (1.35) (0.39) (0.97) (3.34)
BB 0.01 0.06 0.56 11.42 46.05 11.67 1.30 4.21 24.72
(0.06) (0.14) (0.72) (3.33) (6.83) (2.73) (0.96) (3.58) (4.30)
B 0.00 0.03 0.24 0.88 10.75 41.08 4.56 13.13 29.32
(0.06) (0.12) (0.45) (0.79) (3.20) (5.91) (1.76) (7.83) (4.84)
CCC/C 0.00 0.00 0.15 0.65 1.69 16.67 10.74 41.42 28.68
(0.00) (0.00) (0.55) (1.30) (1.81) (7.13) (6.32) (12.94) (8.87)
Table 36
--Five-year transition rates--

AAA 49.52 28.22 4.88 0.82 0.25 0.16 0.08 0.35 15.71
(11.96) (13.15) (2.64) (1.54) (0.47) (0.41) (0.28) (0.60) (6.55)
AA 1.53 49.71 25.09 3.81 0.61 0.40 0.05 0.35 18.44
(0.90) (7.45) (4.70) (1.57) (0.63) (0.60) (0.10) (0.38) (4.60)
A 0.08 5.30 54.54 15.13 2.23 0.75 0.16 0.59 21.21
(0.10) (2.34) (6.54) (2.26) (1.06) (0.88) (0.18) (0.42) (4.08)
BBB 0.03 0.49 10.45 50.53 7.64 2.38 0.42 2.03 26.03
(0.08) (0.55) (3.35) (7.39) (1.79) (1.46) (0.40) (1.44) (4.21)
BB 0.01 0.08 1.09 12.83 30.07 11.12 1.34 8.07 35.37
(0.06) (0.19) (1.01) (3.36) (6.21) (2.24) (0.93) (4.87) (4.50)
B 0.02 0.03 0.30 1.67 10.66 24.39 2.92 19.88 40.14

1627197 | 300000294
Table 36
--Five-year transition rates--

(0.11) (0.10) (0.59) (1.25) (2.83) (5.45) (1.02) (8.87) (5.62)
CCC/C 0.00 0.00 0.13 0.74 2.96 12.28 2.61 46.99 34.28
(0.00) (0.00) (0.52) (1.91) (2.15) (4.77) (3.89) (12.74) (9.48)
Table 37
--Seven-year transition rates--

AAA 38.69 30.81 7.04 1.52 0.28 0.20 0.11 0.54 20.81
(10.43) (11.65) (2.86) (1.90) (0.51) (0.43) (0.31) (0.75) (6.58)
AA 1.57 38.98 28.16 4.97 0.81 0.41 0.03 0.58 24.49
(0.91) (4.92) (3.80) (1.55) (0.60) (0.51) (0.09) (0.53) (4.47)
A 0.08 5.49 45.09 16.77 2.75 0.89 0.16 1.02 27.74
(0.12) (1.89) (5.83) (1.50) (1.12) (0.95) (0.18) (0.47) (3.78)
BBB 0.04 0.63 10.76 41.49 7.45 2.56 0.41 3.15 33.52
(0.12) (0.61) (2.94) (6.35) (0.89) (1.13) (0.34) (1.60) (3.72)
BB 0.00 0.09 1.46 12.45 21.35 9.76 1.03 11.56 42.30
(0.00) (0.19) (1.11) (3.36) (5.37) (2.29) (0.69) (5.05) (3.80)
B 0.01 0.02 0.41 2.10 8.70 15.28 1.76 24.95 46.78
(0.08) (0.09) (0.62) (1.57) (1.79) (4.18) (0.63) (7.75) (5.30)
CCC/C 0.00 0.00 0.26 0.98 3.14 8.14 1.34 50.31 35.84
(0.00) (0.00) (0.64) (2.29) (1.75) (4.26) (2.15) (12.47) (9.79)
Table 38
--10-year transition rates--

AAA 26.40 31.46 9.96 2.91 0.15 0.21 0.03 0.73 28.16
(7.99) (10.78) (2.53) (2.25) (0.30) (0.49) (0.14) (0.78) (6.67)
AA 1.36 28.13 29.34 6.87 1.07 0.45 0.03 0.81 31.94
(0.70) (3.99) (3.80) (1.65) (0.68) (0.36) (0.08) (0.58) (3.83)
A 0.12 5.42 34.91 17.64 3.06 1.03 0.15 1.66 36.01
(0.17) (1.57) (4.31) (2.17) (0.54) (0.68) (0.18) (0.73) (4.15)
BBB 0.02 0.79 10.69 31.93 6.82 2.54 0.35 4.74 42.12
(0.10) (0.67) (3.24) (5.07) (1.25) (1.03) (0.22) (1.95) (3.11)
BB 0.02 0.07 1.85 11.23 13.97 7.76 0.64 15.80 48.67
(0.08) (0.15) (1.13) (3.13) (3.75) (2.43) (0.42) (5.64) (3.20)

1627197 | 300000294
Table 38

B 0.00 0.04 0.49 2.69 6.87 8.41 0.84 29.16 51.50
(0.00) (0.08) (0.64) (1.85) (1.85) (3.00) (0.57) (8.82) (5.21)
CCC/C 0.00 0.00 0.19 0.90 3.61 4.38 0.39 50.77 39.76
(0.00) (0.00) (0.63) (0.98) (2.51) (3.20) (0.70) (11.98) (10.32)
Table 39

AAA 13.68 28.99 14.99 2.94 0.60 0.46 0.00 0.92 37.42
(6.33) (8.14) (2.84) (0.92) (0.42) (0.60) (0.00) (0.87) (3.89)
AA 0.97 16.29 27.17 9.28 1.37 0.70 0.03 1.17 43.02
(0.79) (2.85) (3.69) (2.11) (0.68) (0.45) (0.10) (0.57) (2.62)
A 0.13 4.03 24.12 17.21 3.25 1.23 0.15 2.80 47.08
(0.21) (1.56) (2.39) (1.61) (0.86) (0.49) (0.15) (0.69) (3.62)
BBB 0.00 0.82 8.22 22.65 5.47 2.55 0.25 7.88 52.15
(0.00) (0.53) (2.56) (1.95) (0.76) (0.94) (0.20) (0.76) (2.41)
BB 0.00 0.14 2.03 8.23 7.79 5.18 0.43 22.44 53.75
(0.00) (0.22) (1.24) (2.23) (2.19) (2.05) (0.43) (3.48) (3.39)
B 0.00 0.06 0.54 2.47 3.59 3.65 0.45 37.53 51.71
(0.00) (0.10) (0.53) (1.57) (0.84) (1.19) (0.41) (5.22) (4.84)
CCC/C 0.00 0.00 0.59 1.17 2.81 1.17 0.23 58.78 35.25
(0.00) (0.00) (1.76) (1.34) (3.02) (1.12) (0.93) (8.76) (9.02)
Table 40

AAA 5.99 24.24 19.25 3.42 0.95 1.00 0.00 1.43 43.73
(3.60) (6.42) (4.08) (1.51) (0.45) (0.62) (0.00) (1.00) (5.52)
AA 0.70 9.11 22.34 11.94 1.65 0.94 0.07 1.85 51.38
(0.76) (1.81) (3.66) (1.87) (0.34) (0.44) (0.16) (1.01) (2.02)
A 0.13 2.88 17.93 15.40 3.23 1.57 0.19 4.04 54.65
(0.22) (0.92) (2.15) (1.11) (0.72) (0.70) (0.18) (1.38) (1.91)
BBB 0.00 0.78 6.94 18.56 3.97 1.96 0.18 9.91 57.69
(0.00) (0.32) (1.18) (1.94) (0.95) (0.83) (0.24) (1.59) (2.04)
BB 0.00 0.07 1.62 7.02 4.06 3.69 0.38 24.38 58.77

1627197 | 300000294
Table 40

(0.00) (0.18) (0.64) (1.64) (1.43) (1.10) (0.41) (4.33) (3.06)
B 0.00 0.00 0.47 2.81 2.81 2.03 0.29 35.98 55.61
(0.00) (0.00) (0.27) (0.95) (0.60) (1.00) (0.29) (4.07) (4.33)
CCC/C 0.00 0.00 0.38 0.75 2.25 0.56 0.00 55.91 40.15
(0.00) (0.00) (1.01) (0.93) (3.45) (0.87) (0.00) (8.42) (10.01)
Table 41
Average Multiyear Global Corporate Transition Matrices (1981-2015) – All Financials (%)
One-year
AAA 87.05 9.58 0.34 0.09 0.09 0.04 0.09 0.00 2.74
(10.09) (9.85) (0.99) (0.37) (0.38) (0.24) (0.48) (0.00) (2.44)
AA 0.52 86.58 8.37 0.38 0.02 0.02 0.04 0.04 4.02
(0.57) (6.48) (5.77) (0.67) (0.08) (0.08) (0.17) (0.12) (2.03)
A 0.02 2.43 87.93 4.14 0.23 0.08 0.01 0.10 5.05
(0.13) (1.74) (3.97) (2.62) (0.50) (0.16) (0.05) (0.20) (2.22)
BBB 0.00 0.26 4.82 82.74 3.66 0.49 0.15 0.30 7.59
(0.00) (0.58) (3.22) (4.13) (2.54) (0.88) (0.29) (0.58) (2.01)
BB 0.00 0.11 0.20 6.80 75.19 4.99 0.89 0.86 10.95
(0.00) (0.31) (0.79) (4.34) (7.60) (3.27) (1.83) (1.36) (5.46)
B 0.00 0.04 0.12 0.53 7.23 74.54 3.45 2.96 11.13
(0.00) (0.24) (0.73) (0.94) (4.88) (8.45) (3.88) (4.03) (4.74)
CCC/C 0.00 0.00 0.00 0.00 1.50 14.71 47.38 16.21 20.20
(0.00) (0.00) (0.00) (0.00) (4.32) (11.12) (18.60) (16.60) (12.67)
Three-year
AAA 64.95 24.10 1.63 0.34 0.21 0.09 0.17 0.21 8.29
(16.42) (16.65) (2.24) (1.14) (0.58) (0.35) (0.60) (0.55) (5.88)
AA 1.23 64.95 19.59 1.86 0.20 0.17 0.04 0.21 11.75
(1.02) (10.40) (8.22) (1.60) (0.35) (0.37) (0.10) (0.30) (4.39)
A 0.05 5.84 68.96 8.22 1.19 0.27 0.12 0.46 14.89
(0.16) (3.37) (7.03) (2.68) (1.32) (0.49) (0.22) (0.54) (5.16)
BBB 0.00 0.71 11.83 58.84 5.08 1.13 0.41 1.43 20.59
(0.00) (1.28) (6.56) (6.19) (2.80) (1.13) (0.72) (1.46) (4.27)
BB 0.00 0.17 0.90 15.38 43.18 7.20 1.11 3.72 28.34
(0.00) (0.44) (1.77) (6.04) (10.00) (4.49) (1.73) (4.09) (8.10)
B 0.00 0.00 0.45 1.92 15.29 44.20 3.43 8.07 26.64
(0.00) (0.00) (1.12) (2.88) (6.85) (12.11) (3.27) (8.34) (7.70)
CCC/C 0.00 0.00 0.29 0.59 2.05 21.11 12.02 24.05 39.88

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Table 41
Average Multiyear Global Corporate Transition Matrices (1981-2015) – All Financials (%) (cont.)
(0.00) (0.00) (3.88) (3.12) (4.14) (14.40) (10.88) (18.68) (16.09)
10-year
AAA 24.63 34.39 9.66 2.23 0.10 0.35 0.05 1.04 27.55
(10.96) (14.32) (4.97) (2.86) (0.32) (0.72) (0.22) (1.28) (8.84)
AA 1.28 31.34 29.35 4.77 0.42 0.40 0.04 1.24 31.17
(0.82) (6.30) (6.49) (2.10) (0.38) (0.46) (0.09) (1.23) (5.43)
A 0.12 8.75 36.90 8.53 2.29 0.45 0.19 2.15 40.62
(0.40) (2.62) (4.82) (2.80) (1.15) (0.51) (0.25) (0.99) (6.23)
BBB 0.00 2.31 14.18 24.62 2.63 0.97 0.67 4.93 49.70
(0.00) (3.38) (3.96) (5.53) (1.08) (0.56) (0.67) (2.19) (5.39)
BB 0.00 0.12 4.37 16.24 8.30 4.12 0.12 11.44 55.29
(0.00) (0.42) (3.77) (4.58) (5.77) (2.36) (0.32) (9.78) (8.36)
B 0.00 0.00 2.05 6.87 10.36 9.13 0.41 15.08 56.10
(0.00) (0.00) (2.91) (6.25) (4.73) (5.91) (1.81) (12.83) (11.90)
CCC/C 0.00 0.00 0.51 0.51 4.10 10.26 0.00 31.28 53.33
(0.00) (0.00) (5.15) (1.43) (6.41) (9.57) (0.00) (22.75) (20.07)
Table 42
Average Multiyear Global Corporate Transition Matrices (1981-2015) – Insurance (%)
One-year
AAA 87.68 10.13 0.28 0.00 0.07 0.07 0.14 0.00 1.63
(12.08) (11.60) (1.32) (0.00) (0.32) (0.43) (0.87) (0.00) (2.21)
AA 0.64 86.93 7.79 0.39 0.05 0.05 0.07 0.05 4.02
(1.06) (6.78) (5.84) (0.99) (0.16) (0.15) (0.51) (0.16) (2.34)
A 0.02 2.67 89.15 3.50 0.23 0.09 0.02 0.14 4.18
(0.07) (2.52) (4.79) (2.63) (0.57) (0.27) (0.07) (0.28) (2.02)
BBB 0.00 0.18 6.16 81.84 2.94 0.43 0.36 0.21 7.88
(0.00) (0.80) (3.53) (4.59) (2.78) (1.14) (0.84) (0.76) (3.18)
BB 0.00 0.13 0.51 8.73 72.91 3.54 1.39 0.76 12.03
(0.00) (0.99) (2.28) (9.87) (12.83) (4.36) (3.42) (2.37) (7.66)
B 0.00 0.23 0.47 1.17 8.88 71.26 2.80 2.80 12.38
(0.00) (1.34) (3.11) (3.35) (8.57) (13.95) (4.90) (5.76) (7.86)
CCC/C 0.00 0.00 0.00 0.00 3.66 13.41 41.46 23.17 18.29
(0.00) (0.00) (0.00) (0.00) (11.76) (22.26) (31.14) (26.70) (25.48)
Three-year
AAA 65.65 26.13 1.84 0.00 0.14 0.14 0.28 0.35 5.45
(18.41) (17.54) (2.76) (0.00) (0.55) (0.62) (1.03) (0.89) (5.81)
AA 1.50 66.24 17.75 1.89 0.21 0.26 0.08 0.32 11.75

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Table 42
Average Multiyear Global Corporate Transition Matrices (1981-2015) – Insurance (%) (cont.)
(2.12) (10.65) (7.23) (2.19) (0.53) (0.62) (0.21) (0.45) (4.13)
A 0.07 6.27 72.13 6.63 0.84 0.18 0.16 0.61 13.10
(0.18) (5.08) (9.31) (2.91) (1.42) (0.75) (0.27) (1.05) (4.78)
BBB 0.00 0.53 14.78 58.28 4.35 0.86 0.53 1.23 19.43
(0.00) (1.77) (6.09) (7.69) (3.41) (1.08) (1.29) (2.02) (4.30)
BB 0.00 0.14 2.01 18.22 40.60 4.45 1.72 3.01 29.84
(0.00) (1.06) (4.71) (12.32) (15.46) (4.81) (4.64) (5.38) (11.66)
B 0.00 0.00 2.54 4.52 16.10 41.24 1.41 8.47 25.71
(0.00) (0.00) (6.07) (8.99) (11.52) (16.28) (2.95) (10.09) (10.81)
CCC/C 0.00 0.00 1.27 2.53 5.06 18.99 15.19 31.65 25.32
(0.00) (0.00) (11.42) (11.20) (10.68) (22.94) (18.85) (28.81) (25.03)
10-year
AAA 25.08 38.17 10.58 1.80 0.16 0.55 0.08 1.65 21.94
(13.02) (13.08) (6.37) (2.76) (0.51) (1.22) (0.35) (1.86) (10.72)
AA 1.62 32.35 27.89 4.10 0.61 0.65 0.07 1.83 30.88
(1.82) (6.78) (5.80) (2.42) (0.77) (0.81) (0.17) (1.05) (5.76)
A 0.30 8.79 40.82 7.68 1.89 0.44 0.47 2.87 36.73
(1.50) (5.74) (9.72) (2.87) (2.02) (0.47) (0.54) (1.64) (8.06)
BBB 0.00 2.46 16.31 29.91 2.80 0.59 0.34 5.27 42.31
(0.00) (5.35) (7.86) (6.23) (2.82) (0.56) (0.86) (5.13) (4.93)
BB 0.00 0.56 8.17 17.46 11.27 3.10 0.00 18.59 40.85
(0.00) (1.86) (8.00) (9.64) (8.99) (4.38) (0.00) (15.79) (11.92)
B 0.00 0.00 8.48 15.76 10.30 4.85 1.21 18.18 41.21
(0.00) (0.00) (11.52) (19.29) (11.44) (8.40) (5.94) (14.80) (17.25)
CCC/C 0.00 0.00 2.33 0.00 0.00 0.00 0.00 55.81 41.86
(0.00) (0.00) (15.54) (0.00) (0.00) (0.00) (0.00) (32.49) (31.95)
Table 43
Average Multiyear Global Corporate Transition Matrices (1981-2015) – Financial Institutions (%)
One-year
AAA 86.08 8.74 0.43 0.22 0.11 0.00 0.00 0.00 4.42
(13.50) (12.98) (1.31) (0.95) (0.80) (0.00) (0.00) (0.00) (4.31)
AA 0.40 86.23 8.95 0.37 0.00 0.00 0.00 0.02 4.02
(0.66) (7.74) (7.28) (0.75) (0.00) (0.00) (0.00) (0.10) (2.40)
A 0.02 2.23 86.97 4.65 0.23 0.06 0.01 0.07 5.75
(0.20) (2.04) (5.46) (3.88) (0.72) (0.16) (0.07) (0.25) (3.10)
BBB 0.00 0.30 4.15 83.19 4.01 0.51 0.05 0.34 7.44
(0.00) (0.75) (3.75) (5.64) (3.38) (1.16) (0.23) (0.78) (2.38)

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Table 43
Average Multiyear Global Corporate Transition Matrices (1981-2015) – Financial Institutions (%) (cont.)
BB 0.00 0.11 0.11 6.23 75.86 5.41 0.74 0.89 10.64
(0.00) (0.34) (0.75) (4.03) (7.72) (4.28) (1.75) (1.51) (6.62)
B 0.00 0.00 0.05 0.40 6.88 75.24 3.59 2.99 10.86
(0.00) (0.00) (0.60) (1.00) (5.24) (8.96) (4.67) (4.91) (4.87)
CCC/C 0.00 0.00 0.00 0.00 0.94 15.05 48.90 14.42 20.69
(0.00) (0.00) (0.00) (0.00) (4.05) (11.28) (19.16) (15.24) (12.39)
Three-year
AAA 63.86 20.96 1.31 0.87 0.33 0.00 0.00 0.00 12.66
(19.10) (19.41) (3.07) (2.16) (1.05) (0.00) (0.00) (0.00) (7.81)
AA 0.95 63.65 21.45 1.83 0.19 0.08 0.00 0.11 11.76
(0.97) (12.39) (10.17) (2.02) (0.55) (0.40) (0.00) (0.26) (5.26)
A 0.03 5.51 66.57 9.42 1.46 0.34 0.09 0.35 16.24
(0.22) (3.90) (7.97) (4.12) (2.09) (0.54) (0.28) (0.63) (6.19)
BBB 0.00 0.79 10.38 59.11 5.43 1.26 0.34 1.52 21.16
(0.00) (1.35) (7.46) (7.42) (4.03) (1.57) (0.88) (2.03) (5.13)
BB 0.00 0.17 0.57 14.51 43.97 8.04 0.92 3.93 27.88
(0.00) (0.57) (1.42) (5.59) (10.14) (5.33) (1.99) (4.57) (9.96)
B 0.00 0.00 0.00 1.35 15.11 44.84 3.87 7.99 26.84
(0.00) (0.00) (0.00) (2.41) (8.31) (12.93) (4.31) (10.16) (9.38)
CCC/C 0.00 0.00 0.00 0.00 1.15 21.76 11.07 21.76 44.27
(0.00) (0.00) (0.00) (0.00) (4.44) (15.11) (14.09) (18.14) (15.70)
10-year
AAA 23.85 27.90 8.09 2.96 0.00 0.00 0.00 0.00 37.20
(13.87) (18.11) (5.95) (5.18) (0.00) (0.00) (0.00) (0.00) (11.51)
AA 0.93 30.29 30.85 5.46 0.22 0.15 0.00 0.63 31.48
(0.90) (9.27) (8.82) (3.55) (0.55) (0.32) (0.00) (1.99) (6.39)
A 0.00 8.72 34.46 9.06 2.54 0.46 0.02 1.70 43.03
(0.00) (3.17) (4.85) (4.37) (2.46) (0.67) (0.08) (1.37) (6.64)
BBB 0.00 2.24 13.30 22.44 2.56 1.12 0.81 4.80 52.75
(0.00) (3.13) (3.44) (6.00) (1.12) (0.79) (1.01) (1.90) (6.27)
BB 0.00 0.00 3.30 15.89 7.47 4.41 0.16 9.44 59.32
(0.00) (0.00) (3.24) (4.89) (6.81) (2.91) (0.38) (9.04) (10.16)
B 0.00 0.00 0.74 5.06 10.37 10.00 0.25 14.44 59.14
(0.00) (0.00) (1.82) (4.50) (5.54) (7.04) (0.47) (16.69) (12.73)
CCC/C 0.00 0.00 0.00 0.66 5.26 13.16 0.00 24.34 56.58
(0.00) (0.00) (0.00) (1.90) (8.44) (11.74) (0.00) (20.87) (18.68)

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Table 44
Average Multiyear Global Corporate Transition Matrices (1981-2015) – Nonfinancials (%)
One-year
AAA 87.14 8.03 0.85 0.00 0.07 0.00 0.00 0.00 3.91
(8.40) (7.44) (1.68) (0.00) (0.34) (0.00) (0.00) (0.00) (4.17)
AA 0.55 86.83 7.67 0.71 0.09 0.13 0.00 0.00 4.02
(0.70) (5.68) (3.75) (1.02) (0.31) (0.36) (0.00) (0.00) (2.67)
A 0.04 1.32 87.43 6.38 0.40 0.18 0.02 0.03 4.20
(0.11) (1.25) (4.15) (2.51) (0.50) (0.40) (0.09) (0.08) (2.27)
BBB 0.01 0.06 3.10 86.40 3.88 0.54 0.11 0.15 5.76
(0.05) (0.13) (1.83) (4.57) (1.79) (0.77) (0.25) (0.28) (1.98)
BB 0.02 0.02 0.12 4.75 77.09 7.35 0.59 0.70 9.37
(0.07) (0.10) (0.27) (1.87) (4.78) (3.59) (0.68) (0.92) (2.47)
B 0.00 0.03 0.09 0.17 5.04 74.25 4.49 3.85 12.08
(0.00) (0.10) (0.23) (0.22) (2.06) (4.28) (2.43) (3.49) (2.36)
CCC/C 0.00 0.00 0.16 0.24 0.47 12.55 43.69 27.96 14.94
(0.00) (0.00) (0.53) (0.80) (0.91) (8.72) (9.61) (12.40) (5.62)
Three-year
AAA 66.47 18.28 3.61 0.29 0.14 0.07 0.00 0.00 11.13
(11.31) (9.81) (3.17) (1.31) (0.48) (0.32) (0.00) (0.00) (7.25)
AA 1.25 65.76 18.13 2.54 0.58 0.31 0.02 0.03 11.38
(0.98) (10.10) (5.78) (1.99) (0.79) (0.60) (0.08) (0.11) (5.11)
A 0.08 3.02 67.54 14.66 1.51 0.64 0.09 0.13 12.33
(0.12) (2.57) (6.57) (3.84) (1.12) (0.84) (0.16) (0.20) (3.84)
BBB 0.03 0.18 7.43 65.79 7.73 1.96 0.28 0.79 15.81
(0.08) (0.29) (3.52) (8.49) (2.32) (1.56) (0.37) (1.10) (4.00)
BB 0.01 0.04 0.50 10.68 46.59 12.51 1.34 4.30 24.04
(0.07) (0.15) (0.71) (3.47) (7.29) (3.14) (0.95) (3.77) (4.56)
B 0.01 0.04 0.22 0.78 10.29 40.76 4.68 13.64 29.59
(0.06) (0.13) (0.47) (0.74) (3.12) (5.63) (1.91) (8.01) (5.14)
CCC/C 0.00 0.00 0.13 0.66 1.64 15.99 10.54 44.04 26.98
(0.00) (0.00) (0.43) (1.28) (1.99) (6.98) (6.90) (13.69) (8.78)
10-year
AAA 29.18 26.85 10.43 3.97 0.23 0.00 0.00 0.23 29.11
(9.76) (7.67) (3.93) (3.43) (0.62) (0.00) (0.00) (0.55) (8.08)
AA 1.44 24.90 29.32 9.00 1.73 0.50 0.02 0.37 32.72
(0.95) (7.87) (3.96) (3.90) (1.08) (0.53) (0.10) (0.53) (4.51)
A 0.12 3.49 33.76 22.92 3.50 1.37 0.13 1.37 33.34
(0.15) (2.56) (4.41) (4.39) (1.06) (0.81) (0.19) (0.90) (2.88)
BBB 0.03 0.35 9.69 34.03 8.02 3.00 0.26 4.68 39.94
(0.12) (0.34) (4.10) (5.79) (1.39) (1.32) (0.23) (2.04) (3.34)
BB 0.02 0.06 1.46 10.46 14.84 8.32 0.72 16.47 47.64

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Table 44
Average Multiyear Global Corporate Transition Matrices (1981-2015) – Nonfinancials (%) (cont.)
(0.09) (0.16) (1.10) (3.67) (3.85) (2.79) (0.45) (5.76) (3.73)
B 0.00 0.04 0.36 2.34 6.58 8.34 0.88 30.34 51.11
(0.00) (0.08) (0.68) (1.72) (1.82) (2.89) (0.56) (8.69) (5.23)
CCC/C 0.00 0.00 0.15 0.96 3.54 3.54 0.44 53.57 37.80
(0.00) (0.00) (0.43) (1.11) (2.60) (3.02) (0.81) (11.51) (9.98)
Notes: Numbers in parentheses are weighted standard deviations, weighted by the issuer base. Sources: Standard & Poor’s Global Fixed Income
Appendix II: Gini Methodology

To measure relative ratings performance, we utilize the Lorenz curve as a graphical representation of the
proportionality of a distribution, and we summarize this via the Gini coefficient. For this study, the Lorenz curve is a
plotted with the x axis showing the cumulative share of issuers, arranged by rating, while the y axis represents the
cumulative share of defaulters, also arranged by rating. For both axes of the Lorenz curve, the observations are
ordered from the low end of the ratings scale ('CCC'/'C') to the high end ('AAA'). As an example, if 'CCC'/'C' rated
entities made up 10% of the total population of issuers at the start of the time frame examined (x axis) and 50% of the
defaulters (y axis), then the coordinate (10, 50) would be the first point on the curve. If S&P Global Ratings' corporate
ratings only randomly approximated default risk, the Lorenz curve would fall along the diagonal. Its Gini
coefficient--which is a summary statistic of the Lorenz curve--would thus be zero. If corporate ratings were perfectly
rank ordered so that all defaults occurred only among the lowest-rated entities, the curve would capture all of the area
above the diagonal on the graph (the ideal curve) and its Gini coefficient would be one (see chart 31). The procedure
for calculating the Gini coefficients is illustrated in chart 31--area B is bounded by the random curve and the Lorenz
curve, while area A is bounded by the Lorenz curve and the ideal curve. The Gini coefficient is defined as area B
divided by the total of areas A plus B. In other words, the Gini coefficient captures the extent to which actual ratings
accuracy diverges from the random scenario and aspires to the ideal scenario.

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Chart 31
Appendix III: Defaults In Profile

In 2015, 113 companies (including seven confidential issuers) defaulted with US$110.3 billion of debt outstanding.
Also, S&P Global Ratings revised its rating on one sovereign to 'SD' (selective default). This appendix provides
summaries of the events leading up to each corporate default and, in some cases, events following the default. We also
include the instruments outstanding at the time for each of the companies that S&P Global Ratings rates.
Kaisa Group Holdings Ltd.

Dennis Lee, CFA, Hong Kong (852)2533-3563; Laura C Li, CFA, Beijing (86) 10-6569-2930
• US$800 million 8.875% notes due March 19, 2018

• US$500 million 10.25% notes due Jan. 8, 2020
• US$400 million 9.00% notes due June 6, 2019
• US$250 million 12.875% notes due Sept. 18, 2017
• CNY1.5 billion 8.00% U.S.-dollar settled convertible due Dec. 20, 2015
• CNH1.8 billion 6.875% notes due April 22, 2016
• HKD$400 million term loan bank loan due May 26, 2015
• US$350 million 13.50% fixed senior unsecured notes due April 28, 2015

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• HKD$400 million guaranteed unsecured term loan bank loan due Aug. 9, 2016
• HKD$250 million guaranteed unsecured term loan bank loan due Dec. 31, 2016
On Jan. 5, 2015, S&P Global Ratings lowered its long-term corporate credit rating on China-based real estate
developer Kaisa Group Holdings Ltd. (incorporated in the Cayman Islands, a U.S. tax haven) to 'SD' from 'BB-'. The
downgrade followed the company's default on its HKD$400 million offshore term loan. Kaisa's other debts have
cross-default clauses, and this event of default is expected to accelerate debt repayments in all of its other debts.
On March 24, 2015, we lowered the long-term corporate credit rating on Kaisa to 'D' from 'SD'. The default was a
result of the company's failure to make its US$52 million coupon payments due on March 18 and March 19.
On June 25, 2015, we discontinued the ratings on the company because sufficient and timely information was not
available to assess Kaisa's credit quality.
Table 45
Kaisa Group Holdings Ltd.--Issuer Credit Rating History
Date To
25-Jun-2015 NR/--/--
24-Mar-2015 D/--/--
05-Jan-2015 SD/NM/--
23-Dec-2014 BB-/Watch Neg/--
02-May-2014 BB-/Stable/--
11-Mar-2013 B+/Stable/--
20-Mar-2012 B+/Negative/--
25-May-2011 B+/Stable/--
24-Jan-2011 BB-/Negative/--
12-Apr-2010 BB-/Stable/--
OAS S.A.
Felipe Speranzini, Sao Paulo (55) 11-3039-9751; Renata Lotfi, Sao Paulo (55) 11-3039-9724
• BRL R$170 million debentures due April 10, 2015

• US$500 million 8.875% perpetual notes
• US$400 million 8.00% notes due July 2, 2021
• US$875 million 8.25% notes due Oct. 19, 2019
• BRL R$100 million debentures due April 11, 2016
• BRL R$347.35 million secured notes due Oct. 21, 2024
• BRL R$347.35 million secured notes due July 21, 2024
• BRL160 million floating rate debentures due April 11, 2016
On Jan. 7, 2015, S&P Global Ratings lowered its global scale corporate credit rating on Brazilian engineering and
construction and infrastructure investment group OAS S.A. to 'D' from 'CC'. The ratings were lowered after the
company missed its principal and interest payment, on its ninth debenture issuance. We believe that there is a high
possibility that the company will face general default and, therefore, could be in a process to restructure all its
outstanding debt.

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On March 30, 2015, we withdrew the ratings on OAS at the company's request.
Earlier, on Jan. 5, 2015, we lowered the global scale rating on OAS to 'CC' from 'B+' and placed the rating on
CreditWatch with negative implications. The rating action followed the company's missed interest payment for about
$16 million on its 2021 notes due Jan. 2, 2015.
Table 46
OAS S.A.--Issuer Credit Rating History
Date To
30-Mar-2015 NR/--/--
07-Jan-2015 D/--/--
05-Jan-2015 CC/Watch Neg/--
19-Nov-2014 B+/Negative/--
17-Jun-2014 BB-/Negative/--
17-Sep-2012 BB-/Stable/--
Verso Paper Holdings LLC

Matthew Lynam, CFA, New York (1) 212-438-8002; James E Fielding, New York (1) 212-438-2452; Christopher M
Andrews, New York (1) 212-438-9516
• US$150 million ABL revolver bank loan due May 4, 2017

• US$50 million revolver bank loan due May 4, 2017
• US$271.6 million 11.75% senior secured notes due Jan. 15, 2019
• US$300 million 11.375% senior subordinated notes due Aug. 1, 2016
• US$417.9 million first-lien notes due Jan. 15, 2019
• US$396 million 8.75% senior secured second priority notes due Feb. 1, 2019
On Jan. 8, 2015, S&P Global Ratings lowered its corporate credit ratings on U.S.-based coated paper producer Verso
Paper Holdings LLC and its holding company, Verso Paper Finance Holdings LLC, to 'SD' from 'CC'. The ratings were
lowered following the completion of Verso Paper's acquisition of competitor NewPage Holdings Inc. For this
acquisition, Verso completed a two-part debt exchange whereby both senior secured second priority and senior
subordinated noteholders realized meaningful reductions in principal. We view this exchange as tantamount to default
because the investors will receive less than the promised of the original securities.
On July 8, 2014, we lowered the corporate credit rating on Verso Paper Holdings to 'CC' from 'CCC'. The downgrade
reflected the company's plan to conduct a two-part exchange for its senior secured second-priority notes and senior
subordinated notes.
On June 29, 2015, we raised our corporate credit rating on Verso Paper Holdings and its parent, Verso Paper Finance
Holdings, to 'B-' from 'SD'. The company acquired its competitor NewPage Corp. The rating on Verso reflected S&P
Global Ratings' view of the company's business risk profile as "weak" and its financial risk profile as "highly leveraged."
On Nov. 17, 2015, S&P Global Ratings lowered its corporate credit rating on Verso Paper Holdings to 'CCC-' from 'B-'.
The downgrade and negative outlook followed Verso's announcement that it engaged with advisers and will pursue a
capital restructuring of its debt and potentially sell assets, including its recently idled mill.

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Table 47
Verso Paper Holdings LLC--Issuer Credit Rating History
Date To
17-Nov-2015 CCC-/Negative/--
29-Jun-2015 B-/Stable/--
08-Jan-2015 SD/NM/--
08-Jul-2014 CC/Negative/--
20-Jun-2014 CCC/Negative/--
27-Nov-2012 B-/Stable/--
13-Aug-2012 B/Negative/--
14-May-2012 B/Stable/--
11-May-2012 SD/NM/--
02-May-2012 CC/Negative/--
05-Apr-2010 B/Stable/--
23-Dec-2009 B-/Watch Pos/--
28-May-2009 B-/Negative/--
12-Mar-2009 B/Watch Neg/--
25-Nov-2008 B/Stable/--
12-Aug-2008 B/Positive/--
29-Apr-2008 B/Watch Pos/--
09-Feb-2007 B/Stable/--
12-Jul-2006 B+/Stable/--
Renhe Commercial Holdings Co. Ltd.

Christopher Yip, Hong Kong (852) 2533-3593; Dennis Lee, CFA, Hong Kong (852)2533-3563
• US$300 million 13.00% senior unsecured notes due March 10, 2016
• US$300 million 11.75% senior unsecured notes due May 18, 2015
On Jan. 8, 2015, S&P Global Ratings lowered its long-term corporate credit rating on underground shopping mall
developer and operator Renhe Commercial Holdings Co. Ltd. to 'SD' from 'CC'. The downgrade followed the
company's completion of a buyback of US$221.3 million of its outstanding senior unsecured notes due 2015 and
US$438.8 million of its outstanding senior unsecured notes due 2016 at a substantial discount to their par value. We
view this transaction as a distressed exchange and equivalent to default.
On Jan. 21, 2015, we raised the long-term corporate credit rating on Renhe Commercial Holdings to 'CCC' from 'SD'.
The outlook is negative. The ratings were raised after Renhe completed an exchange offer to buy back 73.8% of its
2015 senior unsecured notes and 73.1% of its 2016 senior unsecured notes, with the rest remaining outstanding. The
company is not likely to be able to sustain its financial commitments, given its weak operating performance.
On Aug. 14, 2015, S&P Global Ratings bases the negative outlook for the next 12 months on its assessment of the
company's weak liquidity due to poor sales execution and heightened refinancing risk in 2016.

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Table 48
Renhe Commercial Holdings Co. Ltd.--Issuer Credit Rating History
Date To
21-Jan-2015 CCC/Negative/--
08-Jan-2015 SD/NM/--
26-Nov-2014 CC/Negative/--
05-Apr-2013 CCC/Negative/--
04-Jul-2012 B-/Negative/--
08-Feb-2011 BB/Negative/--
27-Apr-2010 BB/Stable/--
Virgolino de Oliveira S.A. - Acucar e Alcool

Flavia M Bedran, Sao Paulo (55) 11- 3039-9758; Luisa Vilhena, Sao Paulo (55) 11-3039-9727; Laura Martinez, Mexico
City (52) 55-5081-4425; Marcus Fernandes, Sao Paulo (55) 11-3039-9734
• US$100 million first guaranteed senior secured term loan bank loan due Nov. 3, 2015
• US$300 million 11.75% notes due Feb. 9, 2022
On Jan. 14, 2015, S&P Global Ratings lowered its global scale corporate credit ratings and secured debt ratings on
Brazilian sugarcane processor Virgolino de Oliveira S.A. – Acucar e Alcool (GVO) to 'D' from 'CC'. The downgrade
followed the company's default on the secured bonds' interest payment due Jan. 13, 2015, for about $8 million.
Prior to its default, on Jan. 7, 2015, we lowered the global scale corporate credit and debt ratings on GVO to 'CC' from
'CCC-' and placed it on CreditWatch with negative implications. The downgrade reflected our assumption that GVO
wouldn't be able to comply with its interest payments for about $40 million, $8.5 million of which was due Jan. 13,
2015.
On Aug. 7, 2015, we affirmed our 'D' ratings on GVO as the company was still under a restructuring process.
On Sept. 3, 2015, we affirmed and then withdrew our global scale corporate credit and issue-level ratings on Virgolino
de Oliveira at the issuer's request. At the time of the withdrawal, all ratings were 'D'.
Table 49
Virgolino de Oliveira S.A. - Acucar e Alcool--Issuer Credit Rating History
Date To
03-Sep-2015 NR/--/--
14-Jan-2015 D/--/--
20-Oct-2014 CCC-/Watch Neg/--
31-Jan-2014 B/Negative/--

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Table 49
Virgolino de Oliveira S.A. - Acucar e Alcool--Issuer Credit Rating
History (cont.)
Date To
12-Jan-2011 B/Stable/--
Talon PIKco N.V.

Gerhard Wortche, London +44 207 176 2106; Melvyn Cooke, Paris (33) 1-4420-6783
On Jan. 29, 2015, S&P Global Ratings lowered its long-term corporate credit rating on Belgium-based Talon PIKco
N.V. to 'D' from 'CC' after its subsidiary, Truvo N.V., underwent a debt restructuring that we consider a distressed
exchange. Truvo received consent from lenders to modify its loan agreement that allows it to reschedule some of its
interests and pay them subject to a minimum cash balance. Loan modification by a distressed issuer is considered a de
facto restructuring and tantamount to default under our criteria.
On Dec. 18, 2014, we lowered the long-term corporate credit rating on Talon PIKco to 'CC' from 'CCC-' based on its
subsidiary Truvo's refinancing risk. The capital structure of Truvo is unsustainable, and we expect the entity to
implement debt restructuring that, as per our criteria, is equivalent to default.
On May 11, 2015, S&P Global Ratings withdrew its ratings on the company.
Table 50
Talon PIKco N.V.--Issuer Credit Rating History
Date To
11-May-2015 NR/--/--
29-Jan-2015 D/--/--
18-Dec-2014 CC/Negative/--
27-Aug-2014 CCC-/Negative/--
21-Feb-2013 CCC/Negative/--
25-Nov-2011 CCC+/Negative/--
02-Dec-2010 B-/Negative/--
Connacher Oil and Gas Ltd.

Aniki Saha-Yannopoulos, CFA, PhD, Toronto 416-507-2579; Michelle S Dathorne, Toronto (1) 416-507-2563
• CAD350 million second-lien notes due Aug. 1, 2018

• US$550 million 8.50% second-lien notes due Aug. 1, 2019
• US$129.4 million first guaranteed senior secured term loan bank loan due May 23, 2018
• CAD$30 million first guaranteed senior secured term loan bank loan due Dec. 31, 2016
• CAD$128.4 million first guaranteed senior secured term loan bank loan due May 23, 2018
On Feb. 2, 2015, S&P Global Ratings lowered its long-term corporate credit rating and debt issue ratings on
Canada-based oil and gas producer Connacher Oil and Gas Ltd. to 'D' from 'CC'. The ratings were lowered after the
company announced its proposed recapitalization plan to exchange its existing C$350 million and US$550 million
senior secured second-lien debt (plus accrued interest) for equity. The considerable fall in oil prices since June 2014

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significantly weakened Connacher's liquidity position, rendering the company unable to fund both its debt servicing
obligations and minimum maintenance capital spending requirements.
On April 14, 2015, we withdrew our 'D' long-term corporate credit rating on Connacher Oil and Gas because of lack of
sufficient information to rate the company.
On Sept. 9, 2015, CLC Connacher deferred the scheduled Sept. 30 interest payment on its 12% notes, and on Dec. 15,
2015, CLC Connacher deferred the scheduled Dec. 31 interest payment.
Table 51
Connacher Oil and Gas Ltd.--Issuer Credit Rating History
Date To
14-Apr-2015 NR/--/--
02-Feb-2015 D/--/--
08-Jan-2015 CC/Negative/--
27-Oct-2014 CCC+/Negative/--
16-Aug-2013 CCC+/Stable/--
24-Sep-2012 B/Negative/--
10-Jun-2009 B/Stable/--
13-Feb-2009 B/Watch Neg/--
08-Nov-2007 BB-/Stable/--
06-Sep-2006 B+/Stable/--
Corporate Risk Holdings LLC (Altegrity Inc.)

Peter C Deluca, New York (1) 212-438-1739; Rodney Olivero, CPA, New York (212) 438-2111
• US$825 million 9.50% first-lien notes due July 1, 2019

• US$61 million 15.00% third-lien pay-in-kind exchange notes due July 1, 2021
• US$60 million revolver bank loan due April 1, 2019
• US$29 million 11.75% senior sub notes due May 1, 2016
• US$280 million 10.50% second-lien pay-in-kind exchange notes due July 1, 2020
• US$275 million term bank loan due July 1, 2019
• US$200 million floating rate second-lien pay-in-kind exchange notes due Dec. 31, 2020
• US$11 million 12.00% senior unsecured notes due Nov. 1, 2015
• US$11 million 10.50% senior notes due Nov. 1, 2015
• US$1.385 billion term bank loan due Feb. 21, 2015
• US$280.4 million second-lien notes due July 1, 2020
• US$60.7 million third-lien notes due July 1, 2021
• US$200 million second-lien notes due July 1, 2020
On Feb. 3, 2015, S&P Global Ratings lowered its corporate credit rating on U.S.-based global information services
provider Altegrity Inc. to 'D' from 'CCC-'. The ratings were lowered followed by the company's announcement that it
plans to file a voluntary petition to implement a prenegotiated restructuring of its debt obligations under Chapter 11 of

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the U.S. Bankruptcy Code. In the past few years, Altegrity's operating performance has diminished because of its
reduced competitiveness in information services.
On Sept. 18, 2014, we lowered our corporate credit rating on Altegrity to 'CCC-' from 'CCC+'. The ratings were
lowered after the U.S. Office of Personnel Management notified Altegrity's business segment, USIS, that it will not
exercise its remaining options on its fieldwork and support services contracts.
On Sept. 8, 2015, Altegrity's emerged from Chapter 11 protection and substantially reduced its debts as the company's
second- and third-lien noteholders converted their debt into equity, becoming the new majority owners.
On Sept. 23, 2015, Altegrity's name changed to Corporate Risk Holdings LLC.
Table 52
Altegrity Inc.--Issuer Credit Rating History
Date To
03-Feb-2015 D/--/--
18-Sep-2014 CCC-/Negative/--
03-Jul-2014 CCC+/Negative/--
03-Jul-2014 SD/NM/--
08-May-2014 CC/Negative/--
28-Jan-2014 CCC-/Negative/--
25-Jan-2013 CCC+/Negative/--
26-Jul-2011 B/Negative/--
12-Jul-2010 B/Stable/--
07-Jun-2010 B-/Watch Dev/--
08-Sep-2008 B/Stable/--
14-May-2007 B+/Watch Neg/--
19-Dec-2005 B+/Negative/--
04-Dec-2002 BB-/Stable/--
Afren PLC
Christophe Boulier, Milan 39 02 72 111 226; Lucas Sevenin, Paris (33) 1-4420-6661; Simon Redmond, London (44)
20-7176-3683
• US$360 million 6.625% due 2020 notes due Dec. 9, 2020

• US$300 million 10.25% notes due April 8, 2019
• US$100 million term bank loan due Feb. 27, 2018
On Feb. 4, 2015, S&P Global Ratings lowered its long-term corporate credit rating on U.K.-headquartered oil and gas

1627197 | 300000294
exploration company Afren PLC to 'SD' from 'CC'. The ratings were lowered after Afren missed its obligations under
both its $300 million revolving credit facility (Ebok facility) and its bonds maturing in 2016. We consider the deferral of
debt as equivalent to default.
On Jan. 23, 2015, we lowered the corporate credit rating on Afren to 'CC' from 'B'. The downgrade followed Afren's
announcement that it asked its lenders to defer by three months a $50 million principal payment due at the end of
January 2015 on its Ebok $300 million revolving credit facility, which matures in April 2016.
On June 10, 2015, we downgraded Afren to 'D' from 'SD'. Afren PLC announced on June 10, 2015, that it did not pay
the interest due on its $360 million senior secured bonds maturing in 2020. We consider nonpayment of interest on the
due date to be a default. The company defaulted on all three of its bonds, after defaulting on its bonds maturing in
2016 and 2019 earlier this year.
On Aug. 4, 2015, Afren went into administration and announced the appointment of Blackstone Group International
Partners LLP as its financial advisers, to assist with a review of the company's assets.
Table 53
Afren PLC--Issuer Credit Rating History
Date To
10-Jun-2015 D/--/--
04-Feb-2015 SD/NM/--
23-Jan-2015 CC/Negative/--
22-Dec-2014 B/Negative/--
06-Aug-2014 B+/Negative/--
11-Mar-2013 B/Watch Pos/--
23-Dec-2011 B/Stable/--
26-Nov-2010 B-/Positive/--
RadioShack Corp.
Robert E Schulz, CFA, New York (1) 212-438-7808; Diya G Iyer, New York (1) 212-438-4001
• US$325 million 6.75% senior notes due May 15, 2019

• US$140 million first guaranteed senior secured asset-based bank loan due Dec. 10, 2018
• US$275 million first guaranteed senior secured term loan bank loan due Dec. 10, 2018
• US$50 million first guaranteed senior secured term loan bank loan due Dec. 10, 2018
• US$250 million second guaranteed secured term loan bank loan due Dec. 10, 2018
On Feb. 6, 2015, S&P Global Ratings lowered its corporate credit rating on U.S.-based consumer electronic goods and
services retailer RadioShack Corp. to 'D' from 'CCC-'. The ratings were lowered after the company's filing of a petition
under Chapter 11 of the U.S. Bankruptcy Code. As per the proposed plan, the company has signed a purchase
agreement to sell 1,500 and 2,400 stores to General Wireless Inc. and close down its remaining stores.
On March 26, 2015, we withdrew the ratings on RadioShack as bankruptcy proceedings continued.

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On Sept. 11, 2014, we lowered the corporate credit rating on RadioShack to 'CCC-' from 'CCC'. The downgrade
reflected the company's announcement that it needs capital and could enter debt restructuring process along with
store closures to meet its requirements.
On Oct. 9, 2015, the successor to RadioShack, RS Legacy Corp., emerged from Chapter 11.
Table 54
RadioShack Corp.--Issuer Credit Rating
Date To
26-Mar-2015 NR/--/--
06-Feb-2015 D/--/--
11-Sep-2014 CCC-/Negative/--
20-Dec-2013 CCC+/Negative/--
01-Aug-2013 CCC/Negative/--
12-Aug-2008 BB/Stable/--
25-Oct-2006 BB/Negative/--
24-Jul-2006 BBB-/Negative/--
21-Apr-2006 BBB-/Stable/--
08-Aug-2005 BBB+/Stable/--
13-May-2005 A-/Watch Neg/--
24-Feb-1999 A-/Stable/--
17-Oct-1996 A-/Negative/--
17-Jan-1994 A-/Stable/--
27-May-1993 A-/Watch Pos/--
04-Jan-1993 A/Watch Neg/--
08-Aug-1991 A/Stable/--
28-Nov-1984 A+/Watch Neg/--
10-Jan-1983 AAA/--/--
07-Jan-1982 A/--/--
01-Apr-1981 BBB+/--/--
12-Dec-1980 BB/--/--
13-Oct-1978 BB+/--/--
02-May-1969 BBB-/--/--
Commercial Bank Sudostroitelny Bank LLC

Anastasia Turdyeva, Moscow 7 (495) 783-4091; Roman Rybalkin, CFA, Moscow (7) 495-783-4094
• RUB2 billion 13.5% senior unsecured notes due Oct. 15, 2016
• US$30 million 10.5% subordinated notes due Dec. 28, 2022

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• US$50 million 12% subordinated notes due Dec. 20, 2017
On Feb. 18, 2015, S&P Global Ratings lowered its long-term counterparty credit rating on Russia-based Commercial
Bank Sudostroitelny Bank LLC to 'D' from 'CCC'. The ratings were lowered after the Russian central bank revoked
Sudostroitelny Bank's banking license on Feb. 16, 2015, and placed it under temporary administration, which will
manage the bank until the court decides on the timing and other issues concerning the bank's bankruptcy and
liquidation. The ratings were subsequently withdrawn.
On Jan. 22, 2015, we lowered the long-term foreign and local currency counterparty credit ratings on Sudostroitelny
Bank LLC to 'CCC' from 'B-'. The ratings reflected the bank's deteriorating liquidity conditions due to the outflows of its
retail and corporate clients' fund, which was intensified by the growing pressure on ruble and the overall Russian
economy, especially since December 2014.
Table 55
Commercial Bank Sudostroitelny Bank LLC--Issuer Credit Rating History
Date To
18-Feb-2015 NR/--/--
18-Feb-2015 D/--/--
22-Jan-2015 CCC/Watch Neg/--
03-Jun-2014 B/Negative/--
Bank Tavrichesky
Roman Rybalkin, CFA, Moscow (7) 495-783-4094; Sergey Voronenko, Moscow (7) 495-783-4003
On Feb. 18, 2015, S&P Global Ratings lowered its long-term counterparty credit rating and Russia national scale
ratings on Russia-based Bank Tavrichesky to 'R' from 'CC'. The downgrade follows after Central Bank of Russia (CBR)
appointed temporary administration to Bank Tavrichesky on Feb. 11. CBR's intervention reflects Bank Tavrichesky's
inability to meet its financial obligations stemming from the liquidity crisis that the bank has been facing since
December 2014.
On March 23, 2015, we withdrew the rating on Bank Tavrichesky at the issuer's request. The withdrawal follows the
announcement from CBR and the Deposit Insurance Agency on March 13, 2015, regarding their rehabilitation plan for
Bank Tavrichesky.
Earlier, on Jan. 28, 2015, we lowered the foreign and local currency long-term counterparty credit ratings on Bank
Tavrichesky to 'CC' from 'CCC'. The downgrade reflected our view that Bank Tavrichesky will likely be subject to
regulatory intervention because of liquidity issues that began in December 2014.
Table 56
Bank Tavrichesky--Issuer Credit Rating History
Date To
23-Mar-2015 NR/--/--
18-Feb-2015 R/NM/--

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Table 56
Bank Tavrichesky--Issuer Credit Rating
History (cont.)
Date To
31-Dec-2014 CCC/Watch Neg/--
17-Dec-2014 B-/Watch Neg/--
03-Jun-2014 B-/Negative/--
29-May-2012 B-/Stable/--
Quicksilver Resources Inc.

Carin Dehne-Kiley, CFA, New York (1) 212-438-1092; Stephen Scovotti, New York (1) 212-438-5882
• US$200 million second-lien notes due June 6, 2019

• US$675 million 11.00% senior unsecured notes due July 1, 2021
• US$300 million 9.125% senior notes due Aug. 15, 2019
• US$350 million 7.125% senior subordinated notes due April 1, 2016
• US$625 million second-lien term bank loan due Dec. 31, 2019
• US$600 million 11.75% senior notes due Jan. 1, 2016
• US$1,250 million first guaranteed senior secured bank loan due Sept. 6, 2016
On Feb. 19, 2015, S&P Global Ratings lowered its corporate credit rating on North American oil and gas exploration
and production (E&P) company Quicksilver Resources Inc. to 'D' from 'CCC-'. The rating was lowered after the entity
missed the interest payment of approximately $13.6 million in interest that was due on Feb. 17, 2015, on its 9.125%
senior notes due 2019.
On March 17, the issuer filed for Chapter 11 bankruptcy protection. The bankruptcy court extended the exclusive
period during which the company can file a reorganization plan through Feb. 1, 2016. Following this, the company will
have to secure votes for the proposed plan, through April 13, 2016, as per the court ruling.
On April 21, 2015, we withdrew the ratings on Quicksilver Resources Inc.at the company's request.
Table 57
Quicksilver Resources Inc.--Issuer Credit Rating History
Date To
21-Apr-2015 NR/--/--
19-Feb-2015 D/--/--
03-Oct-2014 CCC-/Negative/--
30-Jun-2014 CCC+/Negative/--
25-Jun-2013 CCC+/Stable/--
27-Aug-2012 B-/Stable/--
08-May-2012 B/Negative/--

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Table 57
Quicksilver Resources Inc.--Issuer Credit Rating
History (cont.)
Date To
23-Jun-2009 B+/Stable/--
18-Jun-2009 B/Watch Pos/--
19-May-2009 B/Developing/--
02-Mar-2009 B/Negative/--
26-Jan-2009 B+/Negative/--
07-Jul-2008 BB-/Stable/--
07-Apr-2008 BB-/Positive/--
03-Mar-2006 BB-/Stable/--
Norske Skogindustrier ASA

Gustav Liedgren, Stockholm (46) 8-440-5916; Terence O Smiyan, London (44) 20-7176-6304
• €150 million 11.75% notes due June 15, 2016

• €500 million 7.00% notes due June 26, 2017
• US$200 million 6.125% bonds due Oct. 15, 2015
• US$200 million 7.125% bonds due Oct. 15, 2033
• €290 million due 2020 bank loan
• US$60.6 million 8% senior unsecured notes due Feb. 24, 2023
• €159 million senior unsecured notes due Feb. 24, 2021
• NOK250 million first-lien senior secured bank loan due Nov. 18, 2016
On Feb. 27, 2015, S&P Global Ratings lowered its corporate credit rating on Norway-based newsprint and magazine
paper producer Norske Skogindustrier ASA (Norske Skog) to 'SD' from 'CC'. The downgrade followed the completion
of Norske Skog's exchange of its senior unsecured notes, whereby existing investors received cash and new notes. As
per our criteria, this exchange is tantamount to a default. We believe the holders of the notes received less value than
the promise of the original security.
On March 6, 2015, we raised the long-term corporate credit rating on Norske Skog to 'CCC+' from 'SD'. The rating
action followed our review of Norske Skog's business risk and financial risk profiles after it completed the exchange of
its senior unsecured notes. We believe that the company improved its liquidity and debt maturity profile after the debt
exchange.
On Nov. 17, 2015, we lowered the long-term corporate credit rating on Norske Skog to 'CC' from 'CCC'. The rating
action was taken after Norske Skog launched a debt exchange offer for its outstanding €108 million and €212 million
senior unsecured notes maturing in June 2016 and June 2017, respectively. We view the exchange as distressed due to
the low recovery risk and substantial default risk. On completion of the plan, we would lower the ratings to 'SD'.
Table 58
Norske Skogindustrier ASA--Issuer Credit Rating History
Date To
17-Nov-2015 CC/Watch Neg/--

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Table 58
Norske Skogindustrier ASA--Issuer Credit Rating
History (cont.)
Date To
25-Sep-2015 CCC/Negative/--
06-Mar-2015 CCC+/Negative/--
27-Feb-2015 SD/NM/--
06-Feb-2014 CCC+/Negative/--
06-May-2013 CCC+/Negative/--
15-Feb-2013 CCC+/Stable/--
12-Feb-2013 SD/NM/--
21-Nov-2012 CCC+/Watch Neg/--
09-Mar-2012 B-/Stable/--
10-Nov-2011 B-/Negative/--
20-Sep-2011 B-/Watch Neg/--
12-Aug-2010 B-/Negative/--
17-Feb-2010 B/Negative/--
19-May-2009 B+/Negative/--
23-Sep-2008 BB-/Negative/--
21-Apr-2008 BB-/Watch Neg/--
28-Jan-2008 BB/Negative/--
22-Oct-2007 BB+/Negative/--
14-Nov-2006 BB+/Stable/--
20-Oct-2006 BBB-/Watch Neg/--
21-Mar-2006 BBB-/Negative/--
18-Mar-2004 BBB/Watch Neg/--
25-Mar-2003 BBB/Negative/--
05-Feb-2003 BBB/Watch Neg/--
12-Oct-2001 BBB/Stable/--
American Eagle Energy Corp.

Christine Besset, Dallas 214-765-5865; Ben B Tsocanos, New York (1) 212-438-5014
• US$175 million 11.00% senior notes due Sept. 1, 2019
On March 4, 2015, S&P Global Ratings lowered its corporate credit and issue-level ratings on U.S. oil and gas E&P
company American Eagle Energy Corp. to 'D' from 'CCC+'. We lowered the ratings after American Eagle missed an
interest payment for $9.8 million due March 2, 2015, on its $175 million senior secured notes due 2019.
On May 14, 2015, we withdrew the ratings on American Eagle Energy, including its 'D' corporate credit rating and 'D'
senior secured debt ratings, at the issuer's request.

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In June, the issuer reached an agreement to sell its assets worth $70 million to an ad hoc committee of holders of its
11% secured notes. The noteholders eventually reduced the bid to $52.5 million in order to promote the goals of the
auction process.
Table 59
American Eagle Energy Corp.--Issuer Credit Rating History
Date To
14-May-2015 NR/--/--
04-Mar-2015 D/--/--
14-Nov-2014 CCC+/Stable/--
05-Aug-2014 CCC+/Developing/--
BPZ Resources Inc.

Michael Tsai, New York (1) 212 438-1084; Paul B Harvey, New York (1) 212-438-7696
• US$150 million senior notes due Dec. 31, 2019

• US$168.8 million 8.5% senior unsecured notes due Oct. 1, 2017
• US$161 million 6.5% senior unsecured bonds due March 1, 2049
• US$170.9 million 6.5% senior unsecured bonds due March 1, 2049
On March 4, 2015, S&P Global Ratings lowered the corporate credit rating on U.S.-based BPZ Resources Inc. to 'D'
from 'CCC+'. The downgrade follows BPZ's announcement that it would exercise its right to utilize the grace period for
payment of $62 million of principal and interest due March 1, 2015. Although the company is currently under the grace
period, the downgrade to 'D' reflects our assessment that BPZ will not make the payment of principal and interest
within the grace period. The ratings were subsequently withdrawn.
After the issuer's failed efforts to refinance the 6.5% convertible issue due March 1, 2015, with a $150 million offering
of secured notes in October, the issuer filed for Chapter 11 bankruptcy protection.
Table 60
BPZ Resources Inc.--Issuer Credit Rating History
Date To
04-Mar-2015 NR/--/--
04-Mar-2015 D/--/--
02-Oct-2014 CCC+/Developing/--
Doral Financial Corp.

Sunsierre Newsome, New York (1) 212-438-2421; E.Robert Hansen, CFA, New York (1) 212-438-7402
• US$100 million notes due April 26, 2022

• US$100 million 7.65% Puerto Rico Conservation Trust Funds notes due March 26, 2016
• US$7.7 million Puerto Rico Indl Tourist Ed, Med & Env Cntl Fac (Doral Fin Center Building) notes due Dec. 1, 2029
• US$44.765 billion PR Ind. Tourist Ed, Med & Env. Control Facilities Financing Authority (AFICA) bonds due Dec. 1,
2029

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On March 12, 2015, U.S.-based Doral Financial Corp. defaulted when it filed for Chapter 11 bankruptcy protection.
Previous to the default, on Dec. 1, 2014, S&P Global Ratings suspended the 'CC' issuer credit rating on Doral Financial
because of lack of sufficient information to perform assessment of published ratings.
Table 61
Doral Financial Corp.--Issuer Credit Rating History
Date To
01-Dec-2014 NR/--/--
06-May-2014 CC/Watch Neg/--
17-Dec-2012 CCC-/Negative/--
19-Apr-2010 B-/Watch Dev/--
20-Mar-2009 B+/Watch Neg/--
01-Apr-2008 B+/Stable/--
20-Jul-2007 B/Watch Pos/--
30-Apr-2007 B/Watch Dev/--
27-Oct-2006 B+/Negative/--
09-Jun-2006 B+/Watch Neg/--
27-Oct-2005 BB-/Watch Neg/--
31-May-2005 BB/Watch Neg/--
19-Apr-2005 BB+/Watch Neg/--
17-Mar-2005 BBB-/Negative/--
10-Feb-2005 BBB-/Stable/--
UC Holdings Inc.
Nishit K Madlani, New York (1) 212-438-4070; Lawrence Orlowski, CFA, New York (1) 212-438-7800
• US$150 million 10% 10.75% senior pay-in-kind toggle notes due Dec. 15, 2018
• US$147.8 million 10% senior pay-in-kind notes due Dec. 15, 2018
• US$375 million 9.25% senior secured notes due Aug. 1, 2018
• US$25 million first-lien notes due Aug. 1, 2018
On March 12, 2015, U.S.-based auto supplier UC Holdings Inc. defaulted when it filed for Chapter 11 bankruptcy
protection.
Previous to the default, on Nov. 20, 2014, we withdrew our ratings on UC Holdings because of a lack of sufficient
information to perform surveillance of our published ratings.
Table 62
UC Holdings Inc.--Issuer Credit Rating History
Date To
20-Nov-2014 NR/--/--
10-Dec-2013 B-/Stable/--

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Table 62
UC Holdings Inc.--Issuer Credit Rating
History (cont.)
Date To
Standard Register Co.

Flavia M Bedran, Sao Paulo (55) 11-3039-9758; Marcelo Tayar, Sao Paulo (55) 11-3039-9762
• US$86.2 million second guaranteed secured term loan bank loan due Feb. 1, 2020
• US$123.75 million first guaranteed senior secured bank loan due Aug. 1, 2018
• US$125 million first senior secured bank loan due Aug. 1, 2018
On March 12, 2015, U.S.-based media and entertainment company Standard Register Co. defaulted when it filed for
Chapter 11 bankruptcy protection to pursue the sale of the company's assets. The bankruptcy court later approved the
sale of assets worth $307 million to Taylor Corp. on June 19, which was subsequently executed.
Allied Nevada Gold Corp.

Chiza B Vitta, Dallas (1) 214-765-5864; James E Fielding, New York (1) 212-438-2452
• CAD400 million 8.75% senior unsecured notes due June 1, 2019

• CAD75 million first-lien senior secured bank loan due April 30, 2016
On March 18, 2015, S&P Global Ratings lowered its corporate credit rating on U.S.-based gold producer Allied Nevada
Gold Corp. to 'D' from 'CCC' after the company filed a voluntary petition under Chapter 11 of the Bankruptcy Code.
The company intends to work with creditors to restructure its balance sheet.
On Oct. 8, the bankruptcy court had approved the company's reorganization plan that was successfully completed.
The issuer reemerged from Chapter 11 and is named Hycroft Mining Corp.
Table 63
Allied Nevada Gold Corp.--Issuer Credit Rating History
Date To
27-Apr-2015 NR/--/--
18-Mar-2015 D/--/--
25-Nov-2014 CCC/Stable/--
28-Mar-2014 CCC+/Negative/--
Armtec Holdings Ltd.

Alessio Di Francesco, CFA, Toronto (1) 416-507-2573; Jarrett Bilous, Toronto (1) 416-507-2593
• CAD150 million 8.875% notes series A due Sept. 22, 2017

• CAD110 million 8% first guaranteed senior secured term loan bank due Dec. 21, 2016
• CAD60 million 3.25% first guaranteed senior secured bank loan due Dec. 21, 2016
• CAD40 million 6.5% subordinated bonds due June 30, 2017

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On March 23, 2015, S&P Global Ratings lowered its long-term corporate credit rating on Canada-based Armtec
Holdings Ltd. to 'SD' from 'CCC-'. The ratings were lowered after Armtec missed the C$6.7 million interest payment
due March 22, 2015, on its senior unsecured notes.
Earlier, on Feb. 26, 2015, we lowered the long-term corporate credit rating on Armtec to 'CCC-' from 'CCC+'. The
downgrade reflected our view that the company's capital structure is unsustainable and the sources of liquidity will not
be sufficient to cover working capital needs, interest, and capital spending.
On April 29, 2015, we lowered our long-term corporate credit rating on Armtec to 'D' from 'SD'. The downgrade was in
response to Armtec's announcement that it filed for creditor protection under the Companies' Creditors Arrangement
Act (CCAA) in Ontario.
On June 2, 2015, we withdrew our ratings, including the 'D' long-term corporate credit rating, on the company due to
lack of sufficient information to rate the company.
Table 64
Armtec Holdings Ltd.--Issuer Credit Rating History
Date To
02-Jun-2015 NR/--/--
29-Apr-2015 D/--/--
23-Mar-2015 SD/NM/--
26-Feb-2015 CCC-/Negative/--
Sete Brasil Participacoes S.A.

Julyana Yokota, Sao Paulo +55 11 3039 9731; Livia Vilela, Sao Paulo 55-11-3039-9775
• US$342.8 million first guaranteed senior secured bank loan due Aug. 24, 2015
• BRL1.85 billion floating rate debentures series 1 due Aug. 15, 2033
On March 23, 2015, S&P Global Ratings lowered its global scale corporate credit rating on Brazil-based oil rig
investment company Sete Brasil Participacoes S.A. to 'SD' from 'B-'. The downgrade followed Sete's declaration of
default and subsequent nonpayment on the $250 million bilateral bridge loan it has with Standard Chartered Bank.
Earlier, on March 16, 2015, we lowered the global scale rating on Sete to 'B-' from 'BB-'. The downgrade reflected
Sete's difficulty in securing long-term financing. This, in turn, further pressures the company's liquidity and weakens its
creditworthiness and delays the drilling vessels' construction.
On Dec. 22, 2015, we affirmed and then withdrew our global and national scale corporate credit ratings on Sete at the
company's request.

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Table 65
Sete Brasil Participacoes S.A.--Issuer Credit Rating History
Date To
22-Dec-2015 NR/NR/--
23-Mar-2015 SD/NM/--
16-Mar-2015 B-/Watch Neg/--
13-Feb-2015 BB-/Watch Neg/--
17-Dec-2014 BB/Stable/--
23-Oct-2012 BB+/Stable/--
EveryWare Global Inc.

Beverly Correa, San Francisco 415-371-5055; Bea Y Chiem, San Francisco (1) 415-371-5070
On April 1, 2015, S&P Global Ratings lowered its corporate credit rating on U.S.-based provider of tabletop and food
preparation products EveryWare Global Inc. to 'D' from 'CCC+'. The downgrade followed the company's
announcement that it planned to file a voluntary petition under Chapter 11 of the U.S. Bankruptcy Code to implement
a prepackaged restructuring of its debt obligations. The operating performance of the entity has been weak over the
past year. It received a waiver from financial sponsor-owner Monomoy Capital Partners in August 2014 to maintain its
financial covenants. However, more recently, the company's auditors informed that they would include a
going-concern qualification in the fiscal 2014 audit, which would constitute a default under the term loan agreement,
triggering the petition to reorganize.
On June 30, 2015, we raised our corporate credit rating on EveryWare Global to 'CCC+' from 'D'. The rating action
followed the company's emergence from bankruptcy after its completion of its financial restructuring. However, our
outlook is still negative, reflecting our view that the company will continue to face liquidity constraints in the next 12
months and that it would be a challenge to improve its financial position.
Table 66
EveryWare Global Inc.--Issuer Credit Rating History
Date To
01-Apr-2015 D/--/--
04-Aug-2014 CCC+/Negative/--
16-May-2014 CCC-/Negative/--
01-Apr-2014 B/Watch Neg/--
Liberty Tire Recycling Holdco LLC

James T Siahaan, CFA, New York (1) 212-438-3023; Henry Fukuchi, New York (1) 212-438-2023
• US$225 million 11.00% senior notes due March 31, 2021
On April 3, 2015, S&P Global Ratings lowered the corporate credit rating on U.S.-based tire recycler and producer of
tire-derived products Liberty Tire Recycling Holdco LLC to 'SD' from 'CC'. The rating was lowered after the company
completed a financial restructuring agreement among its financial sponsor, bondholders, and banks to exchange the

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company's senior unsecured notes. Since the investors will receive less than the value promised under the terms of the
original securities, we considered this a distressed exchange.
On May 5, 2015, we withdrew our ratings on Liberty and its subsidiaries at the issuer's request. On June 16, 2015, we
assigned a 'B-' corporate credit rating on Liberty. The outlook is stable. The rating reflects the entities' efforts to
refinance existing debt by issuing new credit facilities.
Table 67
Liberty Tire Recycling Holdco LLC--Issuer Credit Rating History
Date To
05-May-2015 NR/--/--
03-Apr-2015 SD/NM/--
23-Feb-2015 CC/Watch Neg/--
08-Jan-2015 CCC-/Watch Neg/--
24-Jul-2013 B-/Stable/--
Venoco Inc.
Ben B Tsocanos, New York (1) 212-438-5014; Christine Besset, Dallas 214-765-5865
• US$500 million 8.875% senior notes due Feb. 15, 2019

• US$150 million 11.50% senior notes due Dec. 31, 2017
• US$315 million second-lien bank loan due June 30, 2017
• US$75 million first-lien senior secured bank loan
On April 3, 2015, S&P Global Ratings lowered its corporate credit rating on U.S.-based oil and gas E&P company
Venoco Inc. to 'SD' from 'CCC+'. The rating action followed the company's completion of a debt exchange of its senior
unsecured notes. We view this exchange as equivalent to default as its senior unsecured notes realized a meaningful
loss of principal.
On April 21, 2015, we raised our corporate credit rating on Venoco Inc. to 'CCC+' from 'SD'. The outlook is negative.
The ratings were raised after our review of Venoco's credit profile in conjunction with the release of year-end 2014
financial results and the completion of the exchange of its senior unsecured notes.
Table 68
Venoco Inc.--Issuer Credit Rating History
Date To
22-Apr-2015 CCC+/Negative/--
03-Apr-2015 SD/NM/--
21-Aug-2014 B-/Watch Neg/--
18-Jan-2012 B/Watch Neg/--

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Table 68
Venoco Inc.--Issuer Credit Rating
History (cont.)
Date To
27-Dec-2007 B/Positive/--
Xinergy Corp.
Gayle B Podurgiel, New York (1) 212-438-1706; Marie A Shmaruk, New York (1) 212-438-7816
• US$200 million 9.25% senior secured notes due May 15, 2019
On April 6, 2015, S&P Global Ratings considered the U.S.-based coal producer Xinergy Corp. as a default after it filed a
petition under Chapter 11 of the U.S. Bankruptcy Code.
On May 2, 2013, we withdrew the 'CCC' corporate credit rating and 'CCC-' senior secured debt rating on Xinergy at
the company's request.
Table 69
Xinergy Corp.--Issuer Credit Rating History
Date To
02-May-2013 NR/--/--
30-Jan-2013 CCC/Watch Neg/--
19-Oct-2012 CCC+/Watch Neg/--
24-Feb-2012 B-/Watch Neg/--
RAAM Global Energy Co.

Michael Tsai, New York (212) 438-1084; Paul B Harvey, New York (1) 212-438-7696
• US$250 million 12.50% senior secured notes due Oct. 1, 2015

• US$200 million notes due Dec. 31, 2015
RAAM Global Energy Co. to 'D' from 'CCC-'. The rating action was taken after the company elected to miss its $14.75
million interest payment on its 12.5% senior secured notes due Oct. 1, 2015.
On May 7, 2015, we withdrew our ratings on RAAM Global, including the 'D' corporate credit rating and 'D' secured
notes rating, at the company's request.
Earlier, on Feb. 9, 2015, we lowered the corporate credit and senior secured ratings on RAAM Global to 'CCC-' from
'CCC+'. The ratings reflected the challenges the company could face to refinance its $250 million senior secured notes

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due October 2015 due to the weak market conditions stemming from the depressed hydrocarbon prices.
Table 70
RAAM Global Energy Co.--Issuer Credit Rating History
Date To
07-May-2015 NR/--/--
07-Apr-2015 D/--/--
American Natural Resources Co.

On Jan. 29, 2015, American Natural Resources Co. defaulted after it filed a petition under Chapter 11 of the U.S.
Bankruptcy Code.
Earlier, on Aug. 15, 1989, S&P Global Ratings withdrew its ratings on the entity.
Walter Energy Inc.

Chiza B Vitta, Dallas (1) 214-765-5864; William R Ferara, New York (1) 212-438-1776
• US$350 million 11.00% second-lien pay-in-kind toggle notes due April 1, 2020
• US$500 million 9.875% senior unsecured notes due Dec. 15, 2020
• US$450 million 8.50% senior unsecured notes due April 15, 2021
• US$950 million term A bank loan due April 1, 2016
• US$350 million revolver bank loan due Dec. 31, 2018
• US$375 million revolving bank loan due April 1, 2016
• US$175 million 3.75% sub notes convertible due May 1, 2024
• US$320 million first-lien notes due Oct. 15, 2019
• US$200 million first-lien notes due Oct. 15, 2019
• US$1.4 billion term B bank loan due April 1, 2018
On April 17, 2015, S&P Global Ratings lowered its corporate credit rating on U.S.-based metallurgical coal producer
Walter Energy Inc. to 'D' from 'CCC+'. The downgrade followed the company's failure to pay approximately $62
million in aggregate interest payments on its 9.5% senior secured notes due 2019 and its 8.5% senior notes due 2021.
On June 8, 2015, we raised the corporate credit rating on Walter Energy to 'CCC-' from 'D'. The outlook is negative.
The upgrade followed the company's announcement that it will pay the interest it missed on the senior secured notes
due 2019 and senior notes due 2021.
On June 23, 2015, we lowered the corporate credit rating on Walter Energy Inc. to 'D' from 'CCC-' after the company
elected to miss approximately $19 million in aggregate interest payments on its 9.88% senior notes due 2020.

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Table 71
Walter Energy Inc.--Issuer Credit Rating History
Date To
23-Sep-2015 NR/--/--
23-Jun-2015 D/--/--
08-Jun-2015 CCC-/Negative/--
17-Apr-2015 D/--/--
14-Aug-2014 SD/--/--
05-Sep-2013 B-/Negative/--
20-Jun-2013 B/Watch Neg/--
05-Jul-2012 BB-/Negative/--
28-Feb-2012 BB-/Stable/--
04-Feb-2011 BB-/Positive/--
18-Nov-2010 BB-/Watch Dev/--
10-Jun-2008 B+/Watch Pos/--
03-Oct-2005 B+/Stable/--
20-Jun-2005 BB-/Watch Neg/--
06-Mar-2003 BB/Stable/--
Sabine Oil & Gas Corp.

Aaron McLean, New York (1) 212-438-7211; Ben B Tsocanos, New York (1) 212-438-5014
• US$500 million 7.50% senior unsecured notes due Sept. 15, 2020
• US$1 billion 7.25% senior unsecured notes due June 15, 2019
• US$1 billion revolver bank loan due Dec. 31, 2020
• US$1.5 billion revolver bank loan due June 30, 2016
Sabine Oil & Gas Corp. to 'D' from 'CCC'. The rating action followed the company's decision to not to pay
approximately $15.3 million in interest that was due on April 21, 2015, on its second-lien term loan.
Earlier, on March 17, 2015, we lowered the corporate credit rating on Sabine to 'CCC' from 'B-'. The rating action
followed our assessment that the company may undergo capital restructuring over the next 12 months that could
result in lower ratings on the company and its debt.
On July 15, 2015, we withdrew the ratings on Sabine, including the 'D' corporate credit rating and 'D' issue-level
ratings on the company's first-lien credit facility, second-lien term loan, and unsecured notes. The action was taken as
the entity defaulted more than 30 days prior, and we did not expect to raise the rating on the entity in the near term.

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Table 72
Sabine Oil & Gas Corp.--Issuer Credit Rating History
Date To
15-Jul-2015 NR/--/--
22-Apr-2015 D/--/--
16-Mar-2015 CCC/Watch Neg/--
05-Mar-2015 B-/Watch Neg/--
08-May-2014 B-/Watch Pos/--
28-Feb-2014 B-/Negative/--
11-Jun-2013 B+/Negative/--
28-Aug-2012 B+/Stable/--
18-Jul-2012 B+/Negative/--
02-Mar-2012 BB-/Negative/--
19-May-2008 BB-/Positive/--
31-Oct-2005 BB-/Negative/--
12-Sep-2005 BB-/Watch Neg/--
27-Jan-2004 BB/Watch Neg/--
24-Sep-2003 BB/Stable/--
27-Dec-2000 BB/Positive/--
03-Aug-1999 BB-/Watch Pos/--
07-Dec-1998 BB-/Negative/--
24-Aug-1998 BB-/Stable/--
23-Sep-1997 BB-/Positive/--
20-Jun-1996 B+/Positive/--
10-May-1993 B/Watch Pos/--
27-Mar-1992 B-/Negative/--
06-Sep-1989 B+/Watch Neg/--
07-Jul-1986 CCC+/Watch Pos/--
20-May-1986 B/--/--
24-Sep-1977 BB-/--/--
15-Oct-1971 B/--/--
24-Jan-1964 BB-/--/--

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Winsway Enterprises Holdings Ltd.

Jian Cheng, CFA, Hong Kong (852) 2533-3576; Ellen Y Li, Hong Kong (852) 2533 3527
On April 28, 2015, S&P Global Ratings lowered its long-term corporate credit rating on China-based supplier of
imported coking coal Winsway Enterprises Holdings Ltd. to 'SD' from 'CCC'. The downgrade followed after the
company missed a scheduled interest payment of about US$13.15 million due on its outstanding U.S. dollar notes. We
did not expect Winsway to make the payment within the 30-day grace period as the potential capital restructuring is
conditioned on equity financing, which we believed was not likely to get finalized during that time.
Table 73
Winsway Enterprises Holdings Ltd.--Issuer Credit Rating History
Date To
27-Apr-2015 SD/NM/--
28-Oct-2013 CCC/Negative/--
10-Oct-2013 SD/NM/--
21-Aug-2013 CC/Negative/--
21-Jan-2013 B/Watch Neg/--
03-Sep-2012 B+/Negative/--
18-Jul-2012 B+/Watch Neg/--
28-Feb-2012 B+/Stable/--
02-Nov-2011 BB-/Watch Neg/--
23-Mar-2011 BB-/Stable/--
Halcon Resources Corp.

Ben B Tsocanos, New York (1) 212-438-5014; Christine Besset, Dallas 214-765-5865
• US$500 million 8.625% second priority notes due Feb. 1, 2020

• US$1,500 million first guaranteed senior secured bank loan due Aug. 1, 2019
• US$400 million 9.25% senior unsecured notes due Feb. 15, 2022
• US$1.35 billion 8.875% senior notes due May 15, 2021
• US$1.15 billion 9.75% senior notes due July 15, 2020
• US$1.5 billion first-lien guaranteed senior secured revolving bank loan due Aug. 1, 2019
On May 1, 2015, S&P Global Ratings lowered its corporate credit rating on U.S.-based oil and gas E&P company
Halcon Resources Corp. to 'SD' from 'CCC+'. The downgrade followed the announcement by the company that it
concluded an agreement with holders of portions of its senior unsecured notes to exchange the notes for common
stock. We treat this exchange as distressed because the investors will receive stock valued at less than what was
promised on the original securities.
On June 22, 2015, we raised our corporate credit rating on Halcon to 'B-' from 'SD'. The upgrade followed our

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assessment that the low stock price and diminished market appetite will restrict the company from entering into
additional debt-for-equity transactions that we could view as distressed exchanges.
On Aug. 28, 2015, we lowered our corporate credit rating on Halcon to 'SD' from 'B-'. The rating action was taken after
Halcon's announcement that it reached an agreement with holders of portions of its senior unsecured notes to
exchange the notes for new senior secured third-lien notes. This is viewed as a distressed exchange because
noteholders agreed to receive approximately $1 billion new secured notes, which is less than what was promised on
approximately $1.5 billion of existing unsecured notes.
On Dec. 22, 2015, Halcon completed its discounted debt exchange offer, in which a total of $289.6 million in bonds
from multiple classes were submitted under the exchange. Holders will receive about $112.8 million in new 12%
second-lien senior notes due 2022 in return.
Table 74
Halcon Resources Corp.--Issuer Credit Rating History
Date To
28-Aug-2015 SD/NM/--
01-May-2015 SD/NM/--
22-Oct-2012 B-/Watch Pos/--
25-Jun-2012 B-/Positive/--
Magnetation LLC
Ryan Gilmore, New York; Chiza B Vitta, Dallas (1) 214-765-5864
• US$65 million first guaranteed senior secured revolving loan due Feb. 13, 2018
On May 6, 2015, S&P Global Ratings lowered its corporate credit rating on U.S.-based Magnetation LLC to 'D' from
'B-' following the company's filing of a petition under Chapter 11 of the U.S. Bankruptcy Code. The iron ore
concentrate and pellet producer intends to work with creditors to restructure its balance sheet. In addition, the
company entered into an agreement with certain noteholders on a $135 million debtor in possession secured credit
facility, which it expects will be sufficient to support operations during the restructuring process.
On July 23, 2015, we withdrew the ratings on the company.
Table 75
Magnetation LLC--Issuer Credit Rating History
Date To
23-Jul-2015 NR/--/--
06-May-2015 D/--/--

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Patriot Coal Corp.

• US$250 million exit term bank loan due Dec. 15, 2018
• US$250 million 8.25% senior notes due April 30, 2018
• US$262.50 million 15.00% second-lien notes due Dec. 15, 2023
• US $201 million first-lien guaranteed senior secured letter of credit due Dec. 18, 2018
• US$95 million first guaranteed senior secured asset-based revolving loan due Dec. 18, 2018
On May 14, 2015, S&P Global Ratings lowered its corporate credit rating on U.S.-based coal producer Patriot Coal
Corp. to 'D' from 'B-' after the company filed voluntary petitions for restructuring under Chapter 11 of the U.S.
Bankruptcy Code while it explores strategic alternatives. The company has slightly more than $790 million of debt
outstanding (including letters of credit) and is seeking court approval for a committed $100 million
debtor-in-possession (DIP) financing.
On Oct. 8, 2015, Patriot Coal won confirmation of its Chapter 11 debt repayment plan, which would allow the
company to find new owners for its mines. Eleven days later, a U.S. bankruptcy court approved Patriot Coal Corp.'s
Chapter 11 reorganization plan.
On Nov. 7, 2015, Blackhawk Mining LLC purchased six of Patriot Coal's coal mining complexes.
Table 76
Patriot Coal Corp.--Issuer Credit Rating History
Date To
16-Jul-2015 NR/--/--
14-May-2015 D/--/--
14-Jan-2015 B-/Negative/--
01-Oct-2012 NR/--/--
10-Jul-2012 D/--/--
23-May-2012 CCC/Watch Neg/--
16-May-2012 B-/Watch Neg/--
23-Jan-2012 B+/Watch Neg/--
06-Dec-2010 B+/Watch Neg/--
Colt Defense LLC

Chris Mooney, CFA, New York (1) 212-438-4240; Greg T Maddock, New York (1) 212-438-7205
• US$70 million first guaranteed senior secured PIK term loan due Aug. 15, 2018
On May 19, 2015, S&P Global Ratings lowered its corporate credit rating on U.S.-based gun maker Colt Defense LLC
to 'D' from 'CC'. The downgrade followed the company's announcement that it failed to make an interest payment due

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May 15, 2015.
On June 23, 2015, we discontinued all of the ratings, including the 'D' corporate credit rating, on Colt Defense
following Chapter 11 bankruptcy proceedings.
Table 77
Colt Defense LLC--Issuer Credit Rating History
Date To
23-Jun-2015 NR/--/--
19-May-2015 D/--/--
16-Apr-2015 CC/Watch Neg/--
18-Nov-2014 CCC/Developing/--
13-Nov-2014 CCC-/Watch Neg/--
19-Sep-2014 CCC/Negative/--
24-May-2012 CCC+/Stable/--
08-May-2012 B-/Watch Neg/--
14-Feb-2011 B-/Stable/--
16-Nov-2010 B/Watch Neg/--
02-Apr-2010 B+/Negative/--
01-Aug-2007 B/Stable/--
Far-Eastern Shipping Co. PLC

Juliana C Gallo, London (44) 20-7176-3612; Varvara Nikanorava, London (49) 69-33-999-135
• US$300 million 8.75% notes due May 2, 2020

• RUBpyo 5 billion senior unsecured notes due Feb. 27, 2018
• RUBpyo 5 billion senior unsecured notes due Nov. 28, 2017
On May 19, 2015, S&P Global Ratings lowered its long-term corporate credit rating on Russian integrated logistics,
rail, and port operator Far-Eastern Shipping Co. PLC (FESCO) to 'SD' from 'CC'. We lowered our corporate credit
rating on FESCO following its cash tender offer of its senior secured notes. We view these exchanges as tantamount to
default as investors received lesser amount than they were promised under the original securities. We understand that
the cash tender offer was funded by cash and a combination of ruble- and U.S. dollar-denominated debt amounting to
a combined total of about $144 million.
On June 23, 2015, we raised our long-term corporate credit rating on FESCO to 'B-' from 'SD'. The upgrade follows the
completion of a voluntary cash buyback transaction of FESCO's outstanding senior secured notes due in 2018 and
2020 and its 2017 Russian ruble bonds.

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Table 78
Far-Eastern Shipping Co. PLC--Issuer Credit Rating History
Date To
19-May-2015 SD/NM/--
02-Apr-2015 CC/Negative/--
29-Apr-2014 B+/Negative/--
Tunica-Biloxi Gaming Authority

Stephen Pagano, New York 212-438-4484; Ariel Silverberg, New York (1) 212-438-1807; Melissa A Long, New York (1)
212-438-3886

On May 20, 2015, S&P Global Ratings lowered its issuer credit rating on U.S.-based gaming operator Tunica-Biloxi
Gaming Authority (TBGA) to 'D' from 'CCC'. The downgrade followed TBGA's failure to make an interest payment of
$6.75 million to its unsecured senior noteholders on May 15, 2015.
On Nov. 20, 2015, we withdrew our ratings, including the 'D' issuer credit rating, on TBGA. TBGA did not repay the
notes at maturity on Nov. 15, 2015, and we believe it remains in restructuring discussions with its noteholders.
Table 79
Tunica-Biloxi Gaming Authority--Issuer Credit Rating History
Date To
20-Nov-2015 NR/--/--
20-May-2015 D/--/--
01-Nov-2005 B+/Stable/--
SandRidge Energy Inc.

Ben B Tsocanos, New York (1) 212-438-5014; Aaron McLean, New York (1) 212-438-7211; Christine Besset, Dallas
214-765-5865
• US$1.15 billion 7.50% senior notes due March 15, 2021

• US$750 million 8.125% notes due Oct. 15, 2022
• US$450 million 8.75% senior unsecured notes due Jan. 15, 2020
• US$750 million 8.00% senior notes due June 1, 2018
• US$365.5 million 9.875% senior unsecured notes due May 15, 2016
• US$1 billion second-lien notes due Dec. 31, 2020
• US$2 billion first guaranteed senior secured revolving loan due Oct. 22, 2019
• US$1.25 billion 8.75% second-lien notes due June 1, 2020

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• US$158.4 million 8.13% senior secured notes due Oct. 16, 2022
• US$116.6 million 7.5% senior secured notes due Feb. 16, 2023
• US$1 billion 1L guaranteed secured revolving bank loan due March 2, 2020
• US$300 million 7.00% convertible perpetual preferred stock hybrid
• US$1.15 billion 7.50% senior notes due March 15, 2021
• US$158.4 million 8.125% convertible due Dec. 31, 2022
• US$116.6 million 7.50% convertible due Feb. 16, 2023
• US$350 million term bank loan due April 1, 2014
• US$350 million senior notes due Dec. 31, 2014
On May 20, 2015, we lowered our rating on SandRidge Energy Inc. to 'SD' from 'CCC+', after its agreement with
holders of portions of its senior unsecured notes to exchange the notes for common stock. We view the transaction as
a distressed exchange because investors received stock valued at less than that promised on the original securities.
The exchange reduced the company's approximately $3.4 billion of debt by $50 million, marginally improving financial
leverage.
On May 28, 2015, we raised our corporate credit rating on SandRidge to 'CCC+' from 'SD'. The action followed
SandRidge's announcement of its proposed $1 billion senior secured second-lien note offering to fund general
corporate purposes, including repaying credit facility borrowings and higher capital spending. We view the offering as
a signal that the company is focused on growth to improve financial leverage.
On Aug. 14, 2015, we lowered our corporate credit rating on SandRidge to 'SD' from 'CCC+'. The downgrade followed
SandRidge's announcement that it entered into an agreement to repurchase a portion of its senior unsecured notes at a
significant discount to par. It will repurchase $250 million of aggregate principal amount of notes for $94.5 million in
cash.
On Aug. 20, 2015, we raised our corporate credit rating SandRidge to 'CCC+' from 'SD'. The rating actions followed
SandRidge's issuance of new $275 million of senior unsecured convertible notes due 2022 and 2023 to holders of a
portion of senior unsecured notes due 2020, 2021, 2022, and 2023. The new notes convert mandatorily to common
stock at a threshold of $1.10 per share at a strike price equivalent to 40% of par.
On Oct. 8, 2015, S&P Global Ratings lowered its corporate credit rating on SandRidge to 'SD' from 'CCC+'. The
downgrade follow SandRidge's announcement that it entered into an agreement to repurchase a portion of its senior
unsecured notes at a significant discount to par. The company will repurchase $100 million of aggregate principal
amount of notes for $30 million in cash. We view the repurchase as a distressed exchange because at the close of the
transaction investors receive less than what was promised on the original securities.
Table 80
SandRidge Energy Inc.--Issuer Credit Rating History
Date To
08-Oct-2015 SD/NM/--
14-Aug-2015 SD/NM/--

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Table 80
SandRidge Energy Inc.--Issuer Credit Rating
History (cont.)
Date To
20-May-2015 SD/NM/--
14-May-2015 CCC+/Watch Neg/--
09-Dec-2009 B+/Stable/--
02-Dec-2009 B/Watch Pos/--
14-Mar-2008 B/Positive/--
08-Mar-2007 B/Stable/--
Ceagro Agricola
Flavia M Bedran, Sao Paulo (55) 11- 3039-9758; Luisa Vilhena, Sao Paulo (55) 11-3039-9727;
• US$100 million 10.75% Proposed notes due May 16, 2016
On May 21, 2015, S&P Global Ratings lowered its rating on Brazil-based commodity trading company Ceagro Agricola
to 'D' from 'B'. The downgrade reflected Ceagro's missed interest payment on its 2016 senior unsecured debt due May
16, 2015. The company initiated a restructuring process, which we did not believe would be completed during the cure
period, resulting in a general default on its obligation.
Table 81
Ceagro Agricola--Issuer Credit Rating History
Date To
21-May-2015 D/--/--
04-Oct-2010 B/Stable/--
The State Administration of Railways Transport of Ukraine

Alexander Griaznov, Moscow (7) 495-783-4109; Mikhail Davydov, Moscow +7 495 662 3492
• US$500 million 9.50% loan participation notes (borrower: The State Administration of Railways Transport of
Ukraine) bonds due May 21, 2018
• US$120 million first guaranteed senior secured term loan due Dec. 10, 2021
On May 21, 2015, S&P Global Ratings lowered its long-term corporate credit rating on The State Administration of
Railways Transport of Ukraine (Ukrainian Railways) to 'SD' from 'CC'. The downgrade followed the announcement
made by Ukrainian Railways that it will not may principal payments on certain debt obligations and is planning to
restructure them. The company will continue to make interest payments on its $500 million loan participation notes
and other obligations. We consider the company's proposed restructuring of the $500 million loan participation notes
as equivalent to default.

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Table 82
The State Administration of Railways Transport of Ukraine--Issuer Credit Rating History
Date To
21-May-2015 SD/NM/--
30-Dec-2014 CCC-/Negative/--
03-Mar-2014 CCC/Negative/--
14-Jan-2014 B-/Stable/--
02-May-2013 B-/Watch Pos/--
21-May-2012 B-/Positive/--
Midstates Petroleum Co. Inc.

Michael Tsai, New York (212) 438-1084; Paul B Harvey, New York (1) 212-438-7696
• US$700 million 9.25% senior unsecured notes due June 1, 2021

• US$600 million 10.75% senior unsecured notes due Oct. 1, 2020
• US$750 million first guaranteed senior secured asset-based revolving loan due May 31, 2018
On May 22, 2015, S&P Global Ratings lowered its corporate credit rating on U.S.-based oil and gas E&P company
Midstates Petroleum Co. Inc. to 'SD' from 'B-'. We lowered the rating after Midstates' announcement that it agreed
with holders of portions of its senior unsecured notes to exchange for third-lien secured notes. We view this
transaction as a distressed exchange because at the close of the exchange unsecured debt, investors received less than
what was originally promised on the senior unsecured notes.
On June 2, 2015, we raised our corporate credit rating on Midstates to 'B-' from 'SD'. The rating action reflected
Midstates' participation in the highly cyclical oil and gas industry, small scale of reserves and production, producing
assets primarily located in a single basin, and high debt leverage. We assess the company's liquidity as "adequate," as
defined in our criteria, meaning we expect liquidity sources will exceed uses by at least 1.2x over the next 12 months.
On Oct. 2, 2015, S&P Global Ratings lowered its corporate credit rating on the company to 'CCC+', with a stable
outlook, from 'B-'.
Table 83
Midstates Petroleum Co. Inc.--Issuer Credit Rating History
Date To
02-Oct-2015 CCC+/Stable/--
22-May-2015 SD/NM/--
04-Apr-2013 B/Positive/--

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Table 83
Midstates Petroleum Co. Inc.--Issuer Credit Rating
History (cont.)
Date To
Lupatech S.A.
Felipe Speranzini, Sao Paulo; Renata Lotfi, Sao Paulo (55) 11-3039-9724
• BRL320 million 6.50% unsecured notes due April 15, 2018

• US$47.85 million senior unsecured bank loan due Oct. 8, 2021
• US$47.85 million senior unsecured bank loan due Oct. 8, 2021
On May 26, 2015, S&P Global Ratings lowered its global scale corporate credit rating on Brazil-based oil and gas
equipment provider Lupatech S.A. to 'D' from 'CCC'. We lowered the rating after it filed for judicial reorganization on
May 25, 2015. Therefore, the company will operate under judicial oversight.
On Dec. 16, 2015, we raised the corporate credit rating on Lupatech to 'CCC-' from 'D' on global scale and placed the
ratings on CreditWatch positive. The upgrade reflected the completion of Lupatech's judicial reorganization process
after creditors approved its restructuring plan and the company complied with all legal requirements. As per the
approved plan, the creditors will decide which of the plan's options they would prefer defining final capital structure of
the company.
Table 84
Lupatech S.A.--Issuer Credit Rating History
Date To
16-Dec-2015 CCC-/Watch Pos/--
26-May-2015 D/--/--
11-Dec-2014 CCC/Stable/--
02-Oct-2014 CCC-/Watch Pos/--
11-Apr-2013 D/NM/--
23-Apr-2012 SD/NM/--
11-Oct-2011 B-/Negative/--
03-Sep-2010 B+/Watch Neg/--
21-Jun-2007 BB-/Stable/--
Warren Resources Inc.

Daniel S Krauss, CFA, New York (1) 212-438-2641; Brian Garcia, CFA, Boston (1) 617-530-8315

• US$750 million first guaranteed senior secured revolving loan due Aug. 11, 2019
• US$200 million notes due Dec. 31, 2021

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On May 27, 2015, S&P Global Ratings lowered its corporate credit rating on U.S.-based E&P company Warren
Resources Inc. to 'SD' from 'CCC+'. The downgrade followed the completion of Warren's exchange of about $70
million of its senior unsecured notes for $47 million of first-lien term loans. We view the transaction as a distressed
exchange as investors received 65% of par value, less than they were promised on the original securities.
Earlier, on April 22, 2015, we lowered the corporate credit rating on Warren Resources to 'CCC+' from 'B-'. The rating
action reflected our reduced oil and natural gas price assumptions, which we expected would likely lead to much
weaker earnings and credit measures for Warren in 2015 and 2016. The ratings on Warren reflected our view of the
company's "vulnerable" business risk and "highly leveraged" financial risk.
Table 85
Warren Resources Inc.--Issuer Credit Rating History
Date To
27-May-2015 SD/NM/--
29-Jan-2014 NR/--/--
Molycorp Inc.
Ryan Gilmore, New York (212) 438-0602; Chiza B Vitta, Dallas (1) 214-765-5864;
• US$172.5 million 5.50% senior unsecured notes convertible due Feb. 1, 2018
• US$414 million 6.00% senior notes convertible due Sept. 1, 2017
• US$230 million 3.25% senior notes convertible due June 15, 2016
• US$134.83 million first guaranteed senior secured pay-in-kind term loan due Sept. 11, 2019
• US$50.16 million first guaranteed senior secured pay-in-kind term loan due Sept. 11, 2019
On June 2, 2015, S&P Global Ratings lowered its corporate credit rating on U.S.-based E&P company Molycorp Inc. to
'D' from 'CCC+'. We lowered our ratings on Molycorp after the company elected not to pay the $32.5 million interest
payment on its 10% senior secured notes due 2020. In our opinion, the company has insufficient liquidity to operate
beyond the next few months as it works with creditors to restructure its balance sheet.
On July 16, 2015, we withdrew our ratings on Molycorp.
In July, the bankruptcy court gave approval to Molycorp's proposed DIP facility for $135.4 million from its senior
lender, Oaktree Management.
Table 86
Molycorp Inc.--Issuer Credit Rating History
Date To
16-Jul-2015 NR/--/--
02-Jun-2015 D/--/--

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Table 86
Molycorp Inc.--Issuer Credit Rating
History (cont.)
Date To
26-Nov-2014 SD/NM/--
04-Sep-2014 CCC/Watch Pos/--
16-Jul-2014 CCC/Negative/--
22-Aug-2012 CCC+/Developing/--
13-Aug-2012 CCC+/Watch Dev/--
Cimento Tupi S.A.

Felipe Speranzini, Sao Paulo (55) 11-3039-9751; Renata Lotfi, Sao Paulo (55) 11-3039-9724
On June 11, 2015, S&P Global Ratings lowered its global scale corporate and issue-level ratings on Brazilian cement
producer Cimento Tupi S.A. to 'D' from 'CC'. The downgrade followed Cimento Tupi's June 10, 2015, announcement
that it can't pay the interest of approximately $9 million after the end of the 30-day cure period established by the
notes, originally due on May 11, 2015.
Earlier, on May 11, 2015, we lowered the global scale rating on Cimento Tupi to 'CC' from 'CCC' and placed the
ratings on CreditWatch with negative implications. The rating action reflected Cimento Tupi's missed $9 million
interest payment on its 2018 notes due May 11, 2015. The notes establish a 30-day cure period for the payment. The
negative CreditWatch listing reflected the residual uncertainty or risk that Cimento Tupi won't make the interest
payment within the cure period.
On March 27, 2015, we lowered the global scale corporate credit and issue-level ratings on Cimento Tupi to 'CCC'
from 'B-', and the outlook remained negative. The rating action reflected the company's heavy dependence on positive
developments, such as refinancing or assets sales, to withstand interest burden and debt maturities for the next 12
months. The negative outlook reflected the greater liquidity pressure, while we expect the company's cash flow
generation to drop amid a weak economy and weaker Brazilian real during 2015.
Table 87
Cimento Tupi S.A.--Issuer Credit Rating History
Date To
11-Jun-2015 D/--/--
14-Oct-2014 B/Negative/--
20-Jun-2013 B/Positive/--

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Project Porsche Holdings Corp.

Tuan Duong, New York (212) 438-5327; David T Tsui, CFA, CPA, New York (1) 212-438-2138
On June 15, 2015, S&P Global Ratings lowered its corporate credit rating on Project Porsche Holdings Corp., a
U.S.-based online education curriculum and assessments provider to the U.S. and U.K. adult and K-12 education
markets, to 'SD' from 'CC'. The downgrade followed Project Porsche's completion of its debt exchange transaction.
The company exchanged its $140 million second-lien term for common stock of the company. In addition, the
company received a $35 million capital infusion from its existing second-lien lenders. As a result of the recapitalization,
second-lien lenders own substantially all of the equity in the company. We view the exchange transaction as
tantamount to a default, in accordance with our criteria, because second-lien lenders received less principal and
interest than the securities originally promised.
On June 17, 2015, we raised our corporate credit rating on Project Porsche to 'B' from 'SD', reflecting the company's
reduced pro forma leverage and improved liquidity position and covenant headroom after the recapitalization.
On June 19, 2015, we affirmed the 'B' corporate rating on the company with a negative outlook. We then withdrew the
ratings at the company's request.
Table 88
Project Porsche Holdings Corp.--Issuer Credit Rating History
Date To
19-Jun-2015 NR/--/--
15-Jun-2015 SD/NM/--
American Energy - Woodford LLC

Carin Dehne-Kiley, CFA, New York (1) 212-438-1092; Stephen Scovotti, New York (1) 212-438-5882
On June 25, 2015, S&P Global Ratings lowered its corporate credit rating on U.S.-based oil and gas E&P company
American Energy – Woodford LLC (AEW) to 'SD' from 'CC. At the same time, we removed all ratings from
CreditWatch, where we placed them with negative implications on May 27, 2015. The downgrade followed AEW's
announcement that it completed its previously announced debt-for-debt exchange. Holders of 97% of the company's
$350 million 9% unsecured notes due 2022, equating to approximately $339.7 million of aggregate principal, received
$237.6 million in aggregate principal of new 12% second-lien notes due 2020. Because the holders of the unsecured
notes received less than par, we view the transaction as a distressed exchange. At the same time, AEW received $100
million in equity contributions from its financial sponsors (Energy & Minerals Group, management, and certain
affiliates of management) and entered into a new revolving credit facility with a borrowing base of $140 million.
On June 26, 2015, we raised the corporate credit rating on AEW to 'CCC+' from 'SD', reflecting the company's

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improved leverage and liquidity following its June 24, 2015, debt-for-debt exchange, incremental equity infusion, and
increased borrowing base. Nevertheless, leverage is still at levels we view as unsustainable, and we believe the
company will need to raise additional capital by the end of 2016 to fund its planned capital spending. The positive
outlook reflects our expectation that credit measures will improve and liquidity will remain adequate over the next 12
months, as the company ramps up drilling and production.
Table 89
American Energy - Woodford LLC--Issuer Credit Rating History
Date To
26-Jun-2015 CCC+/Positive/--
25-Jun-2015 SD/NM/--
04-Sep-2014 B-/Stable/--
Piraeus Bank S.A.

Mirko Sanna (39)-02-7211-275
• €3,100 million floating rate senior unsecured notes due Aug. 7, 2015
• €1,750 million floating rate senior unsecured notes due July 30, 2015
• €4,500 million floating rate senior unsecured notes due July 7, 2015
• €750 million floating rate secured notes due Dec. 27, 2016
• €1,250 million floating rate secured notes due Feb. 9, 2017
• €2,700 million term first-lien senior secured bank loan due Sept. 26, 2018
• €500 million 5.00% medium-term notes due March 27, 2017
• €400 million sub medium-term notes series 21 due July 20, 2016
• €60 million formula based medium-term notes series 20 due Oct. 20, 2014
• €200 million floating rate subordinate bonds due Oct. 27, 2034
• €200 million perpetual callable current amount €19.3 hybrid series A
On June 30, 2015, we lowered the long-term counterparty credit rating on Piraeus Bank S.A. to 'SD' from 'CCC'. The
downgrades followed the measures introduced by the Greek government on June 29. Specifically, these include limits
to deposit withdrawals, the closure of bank branches for a full working week, and the prohibition of money transfers
out of Greece unless authorized by the Greek Ministry of Finance. The rating actions reflect our opinion that private
individuals' lack of access to their deposits on a timely and in-full basis, and the constraints to their ability to transfer
funds, constitute a selective default under our criteria. The downgrade of all outstanding senior unsecured notes to
'CCC-' reflected our opinion that it was inevitable that Greek banks would default within six months in the absence of
support from the EU authorities, which S&P Global Ratings did not anticipate would be forthcoming.
On Oct. 16, 2015, we lowered the long-term counterparty credit rating on Piraeus Bank to 'D' from 'SD'. The
downgrade followed the launch of a tender offer to exchange securities from holders of its additional Tier 1 debt, Tier
2 debt, and senior debt instruments with either equity or cash. We view this transaction as distressed and tantamount
to default.

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On Dec. 4, 2015, S&P Global Ratings revised its long-term counterparty credit rating on Piraeus Bank to 'SD' from 'D'.
The ration action followed the completion of a €4.93 billion capital raising plan. However, the rating represents the
inability of the bank to completely fulfill its deposit obligations in a timely manner, due to the capital controls being
imposed in Greece.
Table 90
Piraeus Bank S.A.--Issuer Credit Rating History
Date To
04-Dec-2015 SD/NM/--
16-Oct-2015 D/--/--
30-Jun-2015 SD/NM/--
30-Jan-2015 CCC+/Watch Neg/--
11-May-2011 B/Watch Neg/--
03-Dec-2010 BB/Watch Neg/--
01-Oct-2010 BB/Negative/--
16-Jul-2010 BB/Watch Neg/--
27-Apr-2010 BB/Negative/--
17-Dec-2009 BBB/Watch Neg/--
04-May-2009 BBB/Stable/--
19-Dec-2008 BBB+/Negative/--
07-Oct-2008 BBB+/Stable/--
12-Feb-2008 BBB+/Positive/--
14-Mar-2007 BBB+/Stable/--
02-Mar-2007 BBB+/Watch Pos/--
12-Jan-2007 BBB+/Watch Dev/--
10-Oct-2006 BBB+/Stable/--
01-Sep-2004 BBB/Positive/--
26-Jan-2001 BBB/Stable/--
17-Dec-1999 BBB-/Stable/--
Eurobank Ergasias S.A.

Regina Argenio (39)-02-72111-208
• €1,910 million floating rate senior unsecured notes due Sept. 22, 2015
• €1,650 million floating rate senior unsecured notes due Nov. 5, 2016
• €2,147 million floating rate senior unsecured notes due April 25, 2016
• €588.2 million floating rate senior unsecured notes due April 22, 2016
• €4,280 million floating rate senior unsecured notes due March 18, 2016

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• €1,550 million floating rate senior unsecured notes due Sept. 4, 2015
• €2,300 million floating rate senior unsecured notes due Oct. 22, 2015
• €700 million floating rate secured notes due June 20, 2017
• €700 million floating rate secured notes due July 22, 2016
• €650 million floating rate secured notes due April 20, 2016
• €750 million sub callable medium-term notes due June 8, 2017
• €1,000 million term first-lien senior secured bank loan due Sept. 26, 2018
• €700 million term first-lien senior secured bank loan due Sept. 26, 2018
• €500 million 4.25% medium-term notes due June 26, 2018
• €30.47 million 9% senior secured notes due March 8, 2019
• €5 million 0% senior unsecured notes due Dec. 14, 2017
• €300 million 8.25% callable perpetual preferred shares hybrid series D
• US$4.35 million senior unsecured notes due Nov. 13, 2017
• €35 million range accrual medium-term notes series 292 due Jan. 25, 2016
• €50 million medium-term notes series 257 due April 11, 2017
• €6 million senior unsecured notes due April 13, 2016
• €70 million equity linked notes series 223 due Dec. 15, 2016
• €70 million one coupon profit lock II medium-term notes series 178 due Dec. 15, 2017
On June 30, 2015, we lowered the long-term counterparty credit rating on Eurobank Ergasias S.A. to 'SD' from 'CCC'.
The downgrades to 'SD' followed the measures introduced by the Greek government on June 29. Specifically, these
include limits to deposit withdrawals, the closure of bank branches for a full working week, and the prohibition of
money transfers out of Greece unless authorized by the Greek Ministry of Finance. The rating actions reflect our
opinion that private individuals' lack of access to their deposits on a timely and in-full basis, and the constraints on
their ability to transfer funds, constitute a selective default under our criteria. The downgrade of all outstanding senior
unsecured notes to 'CCC-' reflected our opinion that it was inevitable that Greek banks would default within six months
in the absence of support from the EU authorities, which S&P Global Ratings did not anticipate would be forthcoming.
On Nov. 4, 2015, we lowered the long-term counterparty credit rating on Eurobank to 'D' from 'SD'. The downgrade
followed the launch of a tender offer to exchange securities from holders of its tier 1 debt, tier 2 debt, and senior debt
instruments with equity. We view this transaction as distressed and tantamount to default.
On Nov. 26, 2015, S&P Global Ratings revised its long-term counterparty credit rating on Eurobank to 'SD' from 'D'.
The ration action followed the completion of a €2,039 million capital raising plan. However, the rating represents the
inability of the bank to completely fulfill its deposit obligations in a timely manner, due to the capital controls being
imposed in Greece.
Table 91
Eurobank Ergasias S.A.--Issuer Credit Rating History
Date To
26-Nov-2015 SD/NM/--
04-Nov-2015 D/--/--
30-Jun-2015 SD/NM/--

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Table 91
Eurobank Ergasias S.A.--Issuer Credit Rating
History (cont.)
Date To
04-May-2009 BBB+/Negative/--
19-Dec-2008 A-/Negative/--
24-May-2005 A-/Stable/--
06-Apr-2004 BBB+/Positive/--
26-Jan-2001 BBB+/Stable/--
03-Apr-2000 BBB/Stable/--
17-Dec-1999 BBB-/Positive/--
25-Oct-1999 BBB-/Stable/--
Sharp Corp.
Makiko Yoshimura, Tokyo (81) 3-4550-8368; Hiroki Shibata, Tokyo (81) 3-4550-8437
• JPY¥30 billion 1.604% bonds series 26 due Sept. 13, 2019

• JPY¥10 billion 2.068% bonds series 23 due March 19, 2019
• JPY¥20 billion 1.141% bonds series 25 due Sept. 16, 2016
• JPY¥180 billion term bank loan due March 31, 2016
On June 30, 2015, S&P Global Ratings lowered its long-term corporate credit rating on Japan-based electronics
company Sharp Corp. to 'SD'. Sharp issued preferred securities to its two main lender banks to repay borrowings from
each. We regard this transaction as a de facto debt-for-equity swap, which we define as 'SD'. Earlier, we had placed the
long-term corporate credit ratings on Sharp and Sharp International Finance on CreditWatch with negative
implications on Feb. 4, 2015, following Sharp's announcement of a steep cut in forecast earnings for fiscal 2014 (ended
March 31, 2015). Ordinarily, default ratings apply strictly to the legal entity involved; thus we did not lower the long-
and short-term corporate ratings on the subsidiary to 'SD'.
On July 1, 2015, we raised the long-term corporate credit rating on Sharp Corp. to 'B-' from 'SD' following completion
of the transaction, which resolved the situation that we define as 'SD'. The outlook is negative. The negative outlook
reflects S&P Global Ratings view that Sharp's earnings and financial standing are unlikely to recover materially in the
next six to 12 months or so amid heightened risk of volatility in the earnings of its LCD business.
On Nov. 4, 2015, we lowered the long-term corporate credit and debt ratings on Sharp to 'CCC+' from 'B-'. The rating
action reflected the intense competition Sharp has been facing in its main liquid crystal display (LCD) business, hurting
its profitability. We believe the prime reason for the decline in Sharp's competitiveness is its inability to generate funds

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for development and investment.
Table 92
Sharp Corp.--Issuer Credit Rating History
Date To
30-Jun-2015 SD/NM/--
15-May-2015 CCC-/Watch Neg/--
03-Mar-2015 CCC+/Watch Neg/--
04-Feb-2015 B+/Watch Neg/--
05-Nov-2012 B+/Watch Neg/--
31-Aug-2012 BB+/Watch Neg/--
03-Aug-2012 BBB/Watch Neg/--
27-Jul-2012 BBB+/Watch Neg/--
03-Feb-2012 BBB+/Negative/--
11-May-2011 A-/Stable/--
07-May-2009 A/Negative/--
09-Feb-2009 A/Watch Neg/--
20-Nov-2002 A/Stable/--
Alpha Bank A.E.

Mirko Sanna (39)-02-7211-275
• €3,767 million floating medium-term senior unsecured notes due April 25, 2016
• €1,500 million floating medium-term senior unsecured notes due Nov. 30, 2015
• €950 million floating medium-term senior unsecured notes due Sept. 23, 2015
• €3,609.6 floating million senior unsecured notes due Aug. 27, 2015
• €250 million step-up medium-term secured notes due Jan. 23, 2016
• €500 million floating medium-term secured notes due Jan. 21, 2017
• €1,000 million step-up secured notes due April 24, 2017
• €1,000 million floating secured notes due July 24, 2017
• €1,000 million floating medium-term secured notes due Oct. 23, 2015
• €1,000 million term first-lien senior secured bank ln due Sept. 26, 2018
• €800 million term first-lien senior secured bank ln due Sept. 26, 2018
• €50 million medium-term senior unsecured notes due Nov. 28, 2032
• US$3 million step-up medium-term senior unsecured notes due Aug. 21, 2024
• €500 million 3.375% medium-term notes series 280 due June 17, 2017
• €3.7 million medium-term senior unsecured notes due Dec. 18, 2028
• €85 million 2% medium-term senior unsecured notes due April 27, 2024
• €300 million 6% medium-term senior unsecured notes due May 20, 2017
• €1.55 million floating medium-term senior unsecured notes due Feb. 1, 2017
• €3 million 6.00% medium-term notes series 263 due July 29, 2020

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• €2 million 6.00% medium-term notes series 255 due April 11, 2018
• €350 million sub callable medium-term notes series 127 due Feb. 1, 2017
• €200 million floating rate sub medium-term notes series 134 due March 8, 2017
On June 30, 2015, we lowered the long-term counterparty credit rating on Alpha Bank A.E. to 'SD' from 'CCC'. The
downgrades to 'SD' followed the measures introduced by the Greek government on June 29. Specifically, these include
limits to deposit withdrawals, the closure of bank branches for a full working week, and the prohibition of money
transfers out of Greece unless authorized by the Greek Ministry of Finance. The rating actions reflect our opinion that
private individuals' lack of access to their deposits on a timely and in-full basis, and the constraints to their ability to
transfer funds, constitute a selective default under our criteria. The downgrade of all outstanding senior unsecured
notes to 'CCC-' reflects our opinion that it was inevitable that Greek banks would default within six months in the
absence of support from the EU authorities, which S&P Global Ratings did not anticipate would be forthcoming.
On Oct. 30, 2015, we lowered the long-term counterparty credit rating on Alpha Bank to 'D' from 'SD'. The downgrade
followed the launch of a tender offer to exchange securities from holders of its additional tier 1 debt, tier 2 debt, and
senior debt instruments with either cash or equity.
On Nov. 26, 2015, S&P Global Ratings revised its counterparty credit rating on Alpha Bank to 'SD' from 'D'. The ration
action followed the completion of a €2,563 million capital raising plan. However, the rating represents the inability of
the bank to completely fulfill its deposit obligations in a timely manner, due to the capital controls being imposed in
Greece.
Table 93
Alpha Bank A.E.--Issuer Credit Rating History
Date To
26-Nov-2015 SD/NM/--
30-Oct-2015 D/--/--
30-Jun-2015 SD/NM/--
19-Dec-2008 BBB+/Stable/--
07-Oct-2008 A-/Negative/--
10-Oct-2006 BBB+/Positive/--
09-Dec-2003 BBB+/Stable/--

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Table 93
Alpha Bank A.E.--Issuer Credit Rating
History (cont.)
Date To
10-Jul-2002 BBB+/Negative/--
03-Apr-2000 BBB+/Stable/--
17-Dec-1999 BBB/Positive/--
19-Dec-1997 BBB-/Stable/--
National Bank of Greece S.A.

• €4,265.6 million 7.98% senior unsecured notes due March 26, 2016
• €1,900.00 million 8.05% senior unsecured notes due Nov. 26, 2015
• €4,100 million 8.07% senior unsecured notes due Oct. 15, 2015
• €4,500 million 11.99% senior unsecured notes due May 3, 2016
• €1,500 million 2.08% secured notes due Dec. 24, 2018
• €1,500 million 2.08% secured notes due June 24, 2019
• €1,500 million 2.48% secured notes due Oct. 7, 2016
• €500 million term first-lien senior secured bank In due Sept. 26, 2018
• €1,040 million term first-lien senior secured bank In due Sept. 26, 2018
• €750 million 4.375% senior unsecured notes due April 30, 2019
• €450 million step up med-term notes series 7 due Aug. 3, 2020
• GBP375 million variable sub bonds due Nov. 8, 2037
• GBP17.058 million fixed/floating rate callable perpetual non-cum non-voting preferred stock hybrid series E due
Nov. 29, 2049
• EUR€36.993 million variable rate FX/collared floating hybrid non-cum non-voting perpetual callable series D
• US$38.975 million FX/capped floating hybrid non-cum non-voting perpetual callable series C
• €39.769 million variable rate FX/capped floating hybrid non-cum non-voting perpetual callable series B
• €58.274 million step-up non-voting non-cum hybrid callable perpetual series A
On June 30, 2015, S&P Global Ratings lowered its long-term counterparty credit rating on National Bank of Greece
S.A. (NBG) to 'SD' from 'CCC'. The downgrades followed the measures introduced by the Greek government on June
29. Specifically, these include limits to deposit withdrawals, the closure of bank branches for a full working week, and
the prohibition of money transfers out of Greece unless authorized by the Greek Ministry of Finance. The rating
actions reflect our opinion that private individuals' lack of access to their deposits on a timely and in-full basis, and the
constraints to their ability to transfer funds, constitute a selective default under our criteria. The downgrade of all
outstanding senior unsecured notes to 'CCC-' reflected our opinion that it was inevitable that Greek banks would
default within six months in the absence of support from the EU authorities, which S&P Global Ratings did not
anticipate would be forthcoming.
On Nov. 4, 2015, we lowered our long-term counterparty credit rating on NBG to 'D' from 'SD'. The downgrade
followed NBG's launch on Nov. 2 of a tender offer to exchange securities from holders of its tier 1 debt, tier 2 debt, and
senior debt instruments with equity. This constitutes a distressed exchange under our criteria because it implies that

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investors will receive less value than the promise of the original securities.
On Dec. 11, 2015, we revised the counterparty credit rating on National Bank of Greece to 'SD' from 'D'. The rating
action follows NBG's completion of its €4.48 billion capital raising plan.
Table 94
National Bank of Greece S.A.--Issuer Credit Rating History
Date To
11-Dec-2015 SD/NM/--
04-Nov-2015 D/--/--
30-Jun-2015 SD/NM/--
03-Dec-2010 BB+/Watch Neg/--
27-Apr-2010 BB+/Negative/--
16-Mar-2010 BBB+/Negative/--
17-Dec-2009 BBB+/Watch Neg/--
27-Feb-2006 BBB+/Positive/--
17-Dec-1999 BBB/Positive/--
17-Sep-1997 BBB-/Stable/--
Ferrexpo PLC
Elad Jelasko, CPA, London (44) 20-7176-7013; Simon Redmond, London (44) 20-7176-3683
• US$420 million first guaranteed senior secured revolving bank loan due July 31, 2016
• US$350 million first guaranteed senior secured revolving bank loan due Aug. 8, 2018
• US$285.67 million 7.875% guaranteed bonds due April 7, 2016
On July 6, 2015, S&P Global Ratings lowered its long-term corporate credit rating on Ukraine-based iron ore producer
Ferrexpo PLC to 'SD' from 'CCC'. The downgrade followed Ferrexpo's recent announcement that about 90% of the
noteholders voted in favor of exchanging the outstanding $286 million senior unsecured notes due 2016 for new senior
unsecured notes, which we view, as per our criteria, as a distressed exchange.
On July 13, 2015, we raised our long-term corporate credit rating on Ferrexpo to 'CCC+' from 'SD'. The upgrade
followed Ferrexpo's completion of the exchange of its $286 million senior unsecured notes due 2016 for a $186 million
tap issuance on its senior unsecured notes due 2019. The rating reflected the improvement in Ferrexpo's liquidity
following the exchange, which addressed the previous bulky maturities in April 2016.

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Oct. 23, 2015, we lowered to 'CCC' from 'CCC+' the long-term corporate credit rating on Ferrexpo. The outlook is
negative. The downgrade followed the deterioration in Ferrexpo's liquidity position since our last review in July 2015.
This deterioration is explained by the company's inability to exercise the option to draw additional $150 million under
its pre-export finance facility.
Table 95
Ferrexpo PLC--Issuer Credit Rating History
Date To
06-Jul-2015 SD/NM/--
01-Jun-2015 CCC/Watch Neg/--
23-Jul-2010 B/Watch Pos/--
13-Jul-2015 C/--/--
06-Jul-2015 SD/--/--
28-Feb-2014 C/--/--
30-Jun-2010 B/--/--
PT Berau Coal Energy Tbk.

Vishal Kulkarni, CFA, Singapore (65) 6216-1047; Xavier Jean, Singapore (65) 6239-6346

On July 9, 2015, S&P Global Ratings lowered its long-term corporate credit rating on Indonesia-based coal mining and
trading company PT Berau Coal Energy Tbk. to 'SD' from 'CCC-'. The rating action followed a moratorium by a
Singapore court against legal and enforcement actions by holders of $450 million notes due July 8, 2015, issued by
Berau Capital, a subsidiary of Berau Energy.
On Sept. 11, 2015, we affirmed and withdrew the 'SD' long-term corporate credit rating and ASEAN regional scale
rating on Berau Energy because of a lack of sufficient information to maintain the ratings.
Table 96
PT Berau Coal Energy Tbk.--Issuer Credit Rating History
Date To
11-Sep-2015 NR/--/--
09-Jul-2015 SD/NM/--

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Table 96
PT Berau Coal Energy Tbk.--Issuer Credit Rating
History (cont.)
Date To
21-Jan-2015 CCC-/Watch Neg/--
24-Jun-2014 BB-/Watch Neg/--
27-Feb-2012 BB-/Positive/--
11-Apr-2011 BB-/Stable/--
23-Nov-2010 B+/Watch Pos/--
Lightstream Resources Ltd.

Aniki Saha-Yannopoulos, CFA, PhD, Toronto 416-507-2579; Abidali Maredia, Toronto (1) 416-507-2544

• US$750 million 3.125% senior unsecured notes convertible due Feb. 8, 2016
• CAD1.150 billion revolving bank loan due June 2, 2017
On July 9, 2015, S&P Global Ratings lowered its corporate credit rating on Canada-based oil and gas E&P company
Lightstream Resources Ltd. to 'SD' from 'B'. The downgrade followed Lightstream's announcement that it completed
its previously announced debt-for-debt exchange. Holders of about 58% of the company's 8.625% $800 million
unsecured notes due 2020, equal to $465 million of total principal, received $395 million in total principal of new
9.875% second-lien notes due 2020. We view the transaction as a distressed exchange.
On July 10, 2015, S&P Global Ratings raised its long-term corporate credit rating on Lightstream Resources to 'B-'
from 'SD'. The upgrade followed the improvement in the company's liquidity on the completion of the proposed
debt-for-debt transaction of $200 million additional second-lien notes.
On Oct. 16, 2015, S&P Global Ratings revised its outlook on Lightstream Resources to negative from stable. At the
same time, S&P Global Ratings affirmed its 'B-' long-term corporate credit rating on the company. The outlook revision
reflected our expectation that Lightstream's credit measures will deteriorate as the company will spend below
maintenance capital (C$170 million-C$200 million annually) under S&P Global Ratings commodity price assumptions.
Table 97
Lightstream Resources Ltd.--Issuer Credit Rating History
Date To
09-Jul-2015 SD/NM/--

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Table 97
Lightstream Resources Ltd.--Issuer Credit Rating
History (cont.)
Date To
Tonon Bioenergia S.A.

Flavia M Bedran, Sao Paulo (55) 11- 3039-9758; Marcus Fernandes, Sao Paulo (55) 11-3039-9734
• US$300 million 9.25% bonds due Jan. 24, 2020

• US$73 million 10.50% notes series 1 due May 14, 2024
On July 14, 2015, S&P Global Ratings lowered its corporate credit rating on Brazil-based sugarcane processing
company Tonon Bioenergia S.A. to 'SD' from 'CC' on distressed notes exchange. The downgrade followed Tonon's
announcement that more than 95% of its noteholders approved the proposal for exchanging the amount of the $300
million corresponding to their share for new senior unsecured notes.
On July 17, 2015, we upgraded Tonon to 'CCC-' from 'SD' on the closure of the exchange offer to refinance its senior
unsecured notes maturing in 2020.
On Sept. 1, 2015, we affirmed our 'CCC-' global scale corporate ratings on Tonon. The stable outlook reflected
improved financial flexibility after the recent bond restructuring and new loan, which should enable the company to
meet its immediate interest payments.
On Dec. 10, 2015, we lowered our corporate credit rating on Tonon to 'D' from 'CCC-'. The ratings reflected Tonon's
announcement that it had filed for judicial recovery in order to restructure its capital structure to preserve its ongoing
business.
Table 98
Tonon Bioenergia S.A.--Issuer Credit Rating History
Date To
10-Dec-2015 D/--/--
01-Sep-2015 CCC-/Stable/--
17-Jul-2015 CCC-/Watch Pos/--
14-Jul-2015 SD/NM/--

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CORE Entertainment Inc.

Naveen Sarma, New York (1) 212-438-7833; Minesh Patel, CFA, New York (1) 212-438-6410
• US$200 million first-lien term bank loan due June 21, 2017
• US$160 million 13.50% second-lien term bank loan due June 21, 2018
On July 17, 2015, S&P Global Ratings removed its ratings on U.S.-based TV production studio CORE Entertainment
Inc. from CreditWatch, where they were placed with negative implications on June 17, 2015
On June 11, 2015, CORE Entertainment failed to make the mandatory interest payment on its $160 million second-lien
13.5% term loan on June 11, 2015. The 30-day grace period for the missed interest payment expired on July 14, 2015.
Table 99
CORE Entertainment Inc.--Issuer Credit Rating History
Date To
17-Jul-2015 SD/NM/--
17-Jun-2015 CCC-/Watch Neg/--
Great Atlantic & Pacific Tea Co. Inc. (The)

Charles Pinson-Rose, New York (1) 212-438-4944; Kristina Koltunicki, New York (1) 212-438-7242
• US$175 million 8.00% due Dec. 31, 2016

• US$260 million 11.375% second lien senior secured notes due Aug. 1, 2015
• US$270 million bank loan due March 13, 2017
• US$355 million second-lien senior secured bridge bank loan due Dec. 3, 2015
On July 19, 2015, U.S.-based Grocer A&P, formally known as The Great Atlantic & Pacific Tea Co. Inc., and certain
affiliates filed voluntary petition under Chapter 11 of the U.S. Bankruptcy Code. The company executed asset purchase
agreements covering approximately 120 stores at a purchase price of approximately $600 million, and is seeking U.S.
Bankruptcy Court approval to enter into a $100 million DIP financing agreement with Fortress Investment Group.
On Oct. 29, 2014, we withdrew our ratings on The Great Atlantic & Pacific Tea Co. Inc., including the 'CCC' corporate
credit rating, at the company's request. At the time of the withdrawal, the outlook was developing.
Table 100
Great Atlantic & Pacific Tea Co. Inc. (The)--Issuer Credit Rating History
Date To
29-Oct-2014 NR/--/--
27-Mar-2014 CCC/Developing/--

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Table 100
Great Atlantic & Pacific Tea Co. Inc. (The)--Issuer Credit Rating
History (cont.)
Date To
09-Feb-2011 NR/--/--
13-Dec-2010 D/--/--
28-Oct-2010 CC/Negative/--
17-Jun-2010 CCC+/Developing/--
17-Sep-2007 B-/Watch Pos/--
25-May-2007 B-/Watch Dev/--
28-Feb-2007 B-/Watch Neg/--
06-Apr-2006 B-/Stable/--
11-May-2005 B-/Developing/--
29-Apr-2003 B+/Watch Neg/--
22-Dec-2000 BB/Negative/--
26-Jun-2000 BBB-/Watch Neg/--
25-Feb-1998 BBB-/Negative/--
10-Apr-1997 BB+/Watch Pos/--
08-May-1995 BB+/Stable/--
13-Jan-1993 BBB-/Watch Neg/--
11-Jan-1993 BBB+/Stable/--
28-May-1987 A-/Watch Neg/--
Hercules Offshore Inc.

Stephen Scovotti, New York (1) 212-438-5882; Carin Dehne-Kiley, CFA, New York (1) 212-438-1092
• US$400 million 8.75% senior notes due July 15, 2021

• US$300 million 7.50% senior notes due Oct. 1, 2021

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On July 28, 2015, S&P Global Ratings lowered its corporate credit rating on U.S.-based oil and natural gas exploration
services company Hercules Offshore Inc. to 'D' from 'CC'. The downgrade followed the company's missed interest
payment on its 8.75% senior unsecured notes. It entered into a restructuring support agreement with the steering
group of senior noteholders, which would convert Hercules' outstanding debt of about US$1.2 billion into 96.9% of
equity.
On Nov. 10, 2015, we raised our corporate credit rating on Hercules to 'CCC+' from 'D'. The outlook is negative. The
upgrade reflected Hercules Offshore's new capital structure post reorganization. The company's reorganization
converted approximately $1.2 billion of unsecured debt to equity. In addition, the company recently issued a $450
million first-lien term loan and plans to use proceeds to fund liquidity for ongoing operations and for the final $200
million payment for the Hercules Highlander.
Table 101
Hercules Offshore Inc.--Issuer Credit Rating History
Date To
28-Jul-2015 D/--/--
18-Jun-2015 CC/Watch Neg/--
21-Jul-2009 B/Negative/--
05-Feb-2009 BB-/Negative/--
19-Mar-2007 B/Watch Pos/--
Coyne International Enterprises Corp.

On July 31, 2015, U.S.-based commercial laundry service company Coyne International Enterprises Corp. filed a
voluntary petition under Chapter 11 of the U.S. Bankruptcy Code following a debt default. The company hopes to
continue to operate through the sale closing with $3.5 million in new-money DIP financing from NXT Capital, agent on
Coyne's prepetition senior debt. The DIP also appears to roll up the roughly $33.92 million in outstanding senior debt.
On July 11, 2001, we withdrew the ratings on Coyne International Enterprises.
Table 102
Coyne International Enterprises Corp.--Issuer Credit Rating History
Date To
11-Jul-2001 NR/--/--

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Table 102
Coyne International Enterprises Corp.--Issuer Credit Rating
History (cont.)
Date To
30-Aug-1999 B+/Negative/--
Alpha Natural Resources Inc.


• US$700 million 6.25% senior notes due Dec. 31, 2021
• US$625 million term B bank loan due May 22, 2020
• US$500 million 7.50% senior second-lien notes due Aug. 1, 2020
• US$345 million 3.75% convertible due Dec. 15, 2017
• US$300 million 4.875% convertible due Dec. 15, 2020
• US$500 million 7.50% second-lien notes due Aug. 01, 2020
• US$618.15 million revolving bank loan due Sept. 30, 2017
• US$275.80 million revolving bank loan due June 30, 2016
On Aug. 3, 2015, S&P Global Ratings lowered its corporate credit rating on U.S.-based coal producer Alpha Natural
Resources Inc. to 'D' from 'CCC+'. The rating action followed Alpha's announcement that the company and certain of
its subsidiaries have filed voluntary petitions for restructuring under Chapter 11 of the U.S. Bankruptcy Code.
Table 103
Alpha Natural Resources Inc.--Issuer Credit Rating History
Date To
03-Aug-2015 D/--/--
19-Sep-2012 BB-/Watch Neg/--
06-Jun-2011 BB/Negative/--
31-Jan-2011 BB/Watch Neg/--
12-May-2009 BB-/Watch Pos/--
16-Feb-2007 BB-/Stable/--
01-Mar-2006 BB-/Positive/--

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ASG Consolidated LLC

Kim K Logan, New York (212) 438-3606; Chris Johnson, CFA, New York (1) 212-438-1433
• US$251 million senior discounted notes due Nov. 1, 2011

On Aug. 11, 2015, S&P Global Ratings lowered its corporate credit rating on U.S.-based consumer products company
ASG Consolidated LLC to 'SD' from 'CC'. The rating action followed the company's transfer of its holding company
payment-in-kind (PIK) notes due May 2017 at a substantial discount. The ratings on ASG reflect its highly leveraged
financial profile (including our estimate of debt to EBITDA in excess of nine times as of June 30, 2015) and near-term
potential for declining liquidity due to tightening financial and covenants and pending debt maturities.
On Aug. 18, 2015, we raised the corporate credit rating on ASG Consolidated to 'B-' from 'SD'. The upgrade reflected
the improved sustainability of the company's capital structure following its recapitalization, which included a distressed
exchange of its PIK notes, removal of all debt at entities above the company that had refinancing of all existing bank
and term debt with $800 million first and second lien debt. We believe this transaction will permit the company to
generate much higher discretionary cash flows and slowly repay debt while maintaining more than a 15% covenant
cushion.
Table 104
ASG Consolidated LLC--Issuer Credit Rating History
Date To
11-Aug-2015 SD/NM/--
18-Jun-2015 CC/Negative/--
05-Dec-2011 B/Watch Neg/--
Black Elk Energy Offshore Operations LLC

Ben B Tsocanos, New York (1) 212-438-5014; Christine Besset, Dallas (1) 214-765-5865
• US$150 million 13.75% senior secured notes due Dec. 1, 2015
On Aug. 11, 2015, three creditors of U.S.-based oil and natural gas producer Black Elk Energy Offshore Operations
LLC filed an involuntary petition under Chapter 7 of the U.S. Bankruptcy Code ahead of the maturity of $150 million in
13.75% senior secured notes due on Dec. 1, 2015. The company subsequently filed a voluntary petition under Chapter

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11 of the U.S. Bankruptcy Code. Black Elk has been steadily slimming down its portfolio over several years with
multiple asset sales. On Aug. 31, 2015, the company said it has reached a deal with certain holders of its senior secured
notes authorizing consensual use of their cash collateral to fund operations while it makes its way through Chapter 11.
On Jan. 22, 2015, we withdrew our ratings on Black Elk Energy Offshore Services, including the 'CCC-' corporate
credit rating and 'CCC' senior secured issue rating, at the company's request.
Table 105
Black Elk Energy Offshore Operations LLC--Issuer Credit Rating History
Date To
22-Jan-2015 NR/--/--
17-Sep-2012 CCC+/Negative/--
30-Sep-2011 B-/Stable/--
Samson Resources Corp.

On Aug. 17, 2015, S&P Global Ratings lowered its corporate credit rating on U.S.-based oil and natural gas explorer
and producer Samson Resources Corp. to 'D' from 'CCC-'. The ratings were lowered following Samson's
announcement that it will not make the interest payment due on its senior notes on Aug. 17, 2015, and we believe it to
be a general default under our criteria. Samson Resources will not make the interest payment due on its senior notes as
it has entered into a restructuring support agreement with certain second-lien holders that hold 45.5% of the
second-lien obligations.
On Oct. 6, 2015, we withdrew our ratings.
Table 106
Samson Resources Corp.--Issuer Credit Rating History
Date To
06-Oct-2015 NR/--/--
17-Aug-2015 D/--/--
01-Apr-2015 CCC-/Negative/--
14-Nov-2014 B/Negative/--
31-Jan-2012 B+/Positive/--

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Wilton Holdings Inc.

Beverly Correa, San Francisco 415-371-5055; Bea Y Chiem, San Francisco (1) 415-371-5070
On Aug. 24, 2015, S&P Global Ratings lowered its corporate credit rating on U.S.-based food crafting and consumer
products producer Wilton Holdings Inc. to 'SD' from 'CC'. The downgrade followed Wilton's launch of its capital
structuring plan by exchanging its roughly $514 million holding company PIK notes into preferred equity, which we
view as junior in ranking and which will no longer have a final maturity date. This is viewed as a distressed exchange
because there remains a possibility that investors will not receive their dues on time.
On Aug. 17, 2015, we lowered our corporate credit rating on Wilton Holdings to 'CC' from 'CCC+'. The rating action
was taken after Wilton's announced offer to convert its holding company PIK notes to preferred equity, which is a
more junior position but at the same 17% PIK interest rate as the current holding company notes, with no maturity on
the preferred stock. We viewed this as a distressed exchange, which is equivalent to default. Performance of the issuer
through the second quarter ended June 30 was slightly below our forecasts on account of continued foreign currency
headwinds, timings shift of sales, and declining paper crafting industry, combined with underperformance in the
European and Canadian markets.
On Aug. 25, 2015, we raised our corporate credit rating on Wilton Holdings to 'B-' from 'SD'. The outlook is negative.
The rating action followed the completion of the distressed exchange and the amendment on Wilton's term loan that
results in improved covenant cushion levels and greater operating flexibility. The amendment will provide lenders with
additional covenant protection and will also limit draw-down in a simulated default scenario closer to 60% of the total
asset-backed loan.
Table 107
Wilton Holdings Inc.--Issuer Credit Rating History
Date To
24-Aug-2015 SD/NM/--
17-Aug-2015 CC/Negative/--
SAExploration Holdings Inc.

Aaron McLean, New York (1) 212-438-7211; Ben B Tsocanos, New York (1) 212-438-5014
On Aug. 27, 2015, S&P Global Ratings lowered its corporate credit rating on U.S.-based oilfield services company
SAExploration Holdings Inc. to 'SD' from 'B-'. The rating action followed SAExploration's announcement that it
concluded an agreement with holders of a portion of its senior secured notes for common stock. This is viewed as a
distressed exchange because investors will receive stock whose value will be less than what was promised on the

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original securities.
On Sept. 10, 2015, S&P Global Ratings raised its corporate credit rating on SAExploration to 'B-' from 'SD'. The
outlook is negative. The upgrade followed a review of SAExploration's credit profile in conjunction with the release of
its midyear 2015 financial results. SAExploration completed a debt-for-equity exchange, and we believe the company
is unlikely to enter into additional similar transactions because of its low stock price and diminished market appetite to
give up secured assets.
Table 108
SAExploration Holdings Inc.--Issuer Credit Rating History
Date To
27-Aug-2015 SD/NM/--
Univita Health Inc.

David A Kaplan, CFA, New York (1) 212-438-5649; Tulip Lim, New York (1) 212-438-4061
• US$20 million revolver bank loan due June 17, 2016

• US$200 million term B bank loan due June 19, 2017
On Aug. 28, 2015, U.S.-based home health care service provider Univita Homecare Solutions LLC and 11 of the
company's subsidiaries filed for bankruptcy under Chapter 7 of the U.S. Bankruptcy Code.
On June 9, 2014, S&P Global Ratings withdrew its ratings at the issuer's request.
Table 109
Univita Health Inc.--Issuer Credit Rating History
Date To
09-Jun-2014 NR/--/--
Investtradebank JSC
Ekaterina Tolstova, Moscow (7) 495-783-41-18; Anastasia Turdyeva, Moscow (7) 495-783-40-91
• RUB2.5 billion 14.15% secured notes due Feb. 6, 2020
On Sept. 1, 2015, S&P Global Ratings lowered its long-term counterparty credit rating on Russian bank
Investtradebank JSC to 'R' from 'B' and the Russia national scale ratings on Investtradebank to 'R' (regulatory
supervision) from 'ruBBB+'. The rating action was taken after the CBR intervened and assigned the Deposit Insurance
Agency (DIA) temporary manager of the bank to develop a plan for the bank's financial rehabilitation. The CBR has
suspended the decision-making authority of the bank's shareholders and managers. In this context, the DIA has the
power to authorize payment of some obligations and not others.
On Nov. 25, 2015, we affirmed our long-term counterparty credit and national scale ratings on Investtradebank at 'R'

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(regulatory supervision). We then withdrew the ratings at the issuer's request.
Table 110
Investtradebank JSC--Issuer Credit Rating History
Date To
25-Nov-2015 NR/--/--
01-Sep-2015 R/--/--
Goodrich Petroleum Corp.

John W Rogers, New York (1) 212-438-1419; Stephen Scovotti, New York (1) 212-438-5882
• US 275 million 8.8% senior notes due March 15, 2019

• US$219 million 5% convertible due Oct. 1, 2029
• US$175 million 3.25% senior notes convertible due Dec. 1, 2026
• US$166.3 million 5% senior notes convertible due Oct. 1, 2032
• US$100 million 8% second-lien notes due March 15, 2018
• US$600 million 8.875% first-lien guaranteed senior revolving bank loan due Feb. 24, 2017
On Sept. 2, 2015, S&P Global Ratings lowered its corporate credit rating on U.S.-based oil and natural gas producer
Goodrich Petroleum Corp. to 'SD' from 'B-'. The ratings were lowered after Goodrich reached an agreement with
holders of portions of its senior unsecured convertible notes worth $55 million to exchange the notes for new senior
unsecured convertible notes worth $27.5 million. As per this transaction, the senior holders of debt will receive
significantly less than promised. The company would end up cutting its debt by roughly $83.2 million in its distressed
debt exchange.
Table 111
Goodrich Petroleum Corp.--Issuer Credit Rating History
Date To
02-Sep-2015 SD/NM/--
Quiksilver Inc.
Peter C Deluca, New York (1) 212-438-1739; Diane M Shand, New York (1) 212-438-7860

• US$225 million 10.00% senior unsecured notes due Aug. 1, 2020
• €200 million 8.88% senior unsecured notes due Dec. 15, 2017
• €60 million first-lien senior secured bank loan due Oct. 31, 2016
On Sept. 10, 2015, S&P Global Ratings lowered its corporate credit rating on U.S.-based Quiksilver Inc. to 'D' from
'CCC+'. The downgrade followed Quiksilver's announcement that it filed a voluntary petition to implement a

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prenegotiated restructuring of its debt obligations under Chapter 11 of the U.S. Bankruptcy Code. Execution issues in
North America and foreign exchange headwinds overseas leading to declining cash flow and weaker credit metrics
resulted in poor operating performance of the company over the past two years.
On Dec. 1, 2015, Quiksilver received bankruptcy court approval to begin polling creditors on a bankruptcy-exit plan
that gives an increased recovery for unsecured creditors.
Table 112
Quiksilver Inc.--Issuer Credit Rating History
Date To
10-Sep-2015 D/--/--
10-Aug-2010 B-/Watch Pos/--
17-Mar-2009 B-/Watch Dev/--
07-May-2007 BB-/Negative/--
12-Mar-2007 BB/Watch Neg/--
30-Jun-2005 BB/Stable/--
PJSC Commercial Bank PrivatBank

Annette Ess, CFA, Frankfurt (49) 69-33-999-157; Anastasia Turdyeva, Moscow (7) 495-783-40-91; Natalia Yalovskaya,
London (44) 20-7176-3407
• US$150 million 5.80% subordinate notes due Feb. 9, 2016

• US$220 million 11.00% secured notes due Feb. 9, 2021
On Sept. 23, 2015, S&P Global Ratings lowered its long-term counterparty credit rating on Ukrainian Bank PJSC
Commercial Bank PrivatBank to 'SD' from 'CC'. The ratings were lowered after PrivatBank's signing of a supplemental
loan agreement on Sept. 8, 2015, regarding US$200 million bonds due September 2015. As part of the agreement,
PrivatBank changed the interest rate to 10.25% from 9.375% on the bonds and extended the maturity date to Jan. 15,
2016, from Sept. 23, 2015. The extension is viewed as a distressed exchange, which is tantamount to a selective
default, as per our criteria. Also, the investors will receive less than the full value of bonds as originally agreed.
On Sept. 28, 2015, S&P Global Ratings raised its long-term counterparty credit rating on PrivatBank to 'CC' from 'SD'.
The ratings were raised after PrivatBank's creditors agreed to extend the maturity of its US$200 million bonds due
Sept. 23, 2015 to Jan. 15, 2016, and change the interest rate to 9.375% from 10.25% per year.
On Dec. 4, 2015, we lowered our ratings on PrivatBank to 'SD' from 'CC/C'. The downgrade followed PrivatBank's
signing an agreement with its creditors on Nov. 13, 2015, to restructure two bonds--$150 million of subordinated debt

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with an original maturity in February 2016 and a $200 million senior unsecured bond with an original maturity in
September 2015. This is a distressed exchange offer and tantamount to a selective default as per our criteria.
On Dec. 7, 2015, we raised our long-term counterparty credit rating on PrivatBank to 'B-' from 'SD'. The outlook is
negative. The rating action followed PrivatBank's completion of its debt restructuring. PrivatBank successfully
restructured its debt, extending the maturity of its $200 million senior unsecured bond to Jan. 23, 2018, and that of its
$150 subordinated bond to Feb. 9, 2021. The negative outlook on PrivatBank reflects our view that poor economic
conditions and funding profile constraints for Ukrainian banks will continue to weigh on the bank's creditworthiness in
the next 12 months.
Table 113
PJSC Commercial Bank PrivatBank--Issuer Credit Rating History
Date To
04-Dec-2015 SD/NM/--
28-Sep-2015 CC/Negative/--
23-Sep-2015 SD/NM/--
23-Dec-2014 CCC/Negative/--
12-Aug-2014 CCC/Stable/--
12-Dec-2005 NR/--/--
28-Oct-2003 B-/Stable/--
Edcon Holdings Ltd.

Raam Ratnam, London +442071767462; Frank Siu, London +44 (0) 207 176 3670
• €425 million 13.38% senior notes due June 30, 2019

• €317 million 9.50% guaranteed bonds due March 1, 2018
• €300 million 9.50% notes due March 1, 2018
• €200 million 13.38% senior subordinate notes due June 30, 2019
• €241.3 million 13.38% senior subordinate notes due June 30, 2019
• €21.6 million 8.00% secured notes due June 30, 2019
• ZAR 1.01 billion 12.40% first-lien notes due April 4, 2016
On Sept. 25, 2015, S&P Global Ratings lowered its long-term corporate credit rating on South Africa-based non-food
retailer Edcon Holdings Ltd. to 'SD' from 'CC'. The rating action was taken after the conclusion of Edcon's exchange
offer for its €425 million 13.375% senior unsecured notes due 2019.

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On July 2, 2015, S&P Global Ratings lowered its long-term corporate credit rating on Edcon to 'CC' from 'CCC+'. The
downgrade followed Edcon's announcement of a launch of an exchange offer for the €425 million 13.375% senior
unsecured notes due 2019. The exchange is viewed as distressed because investors will receive significantly less value
than promised.
Table 114
Edcon Holdings Ltd.--Issuer Credit Rating History
Date To
25-Sep-2015 SD/NM/--
30-Sep-2014 CCC+/Stable/--
Floworks International LLC

Michael Maggi, CFA, New York (212) 438-7302; William R Ferara, New York (1) 212-438-1776
On Sept. 29, 2015, S&P Global Ratings lowered its corporate credit rating on U.S.-based industrial metals distributor
Floworks International LLC to 'SD' from 'B-'. The ratings were lowered following a below par value repayment of
approximately $29 million of Floworks' outstanding $250 million senior secured notes due 2019, so investors received
less than what was promised on the original securities, which is viewed as a distressed exchange under our criteria.
On Oct. 6, 2015, S&P Global Ratings raised its corporate credit rating on Floworks to 'CCC+' from 'SD'. The outlook is
stable. The upgrade reflected S&P Global Ratings' assessment of the company being unlikely to enter into further
distressed exchange transactions in the context of Flowork's negative covenants under its asset-based loan facility and
current cash portion.
Table 115
Floworks International LLC--Issuer Credit Rating History
Date To
06-Oct-2015 CCC+/Stable/--
29-Sep-2015 SD/NM/--
Dex Media Inc.

Minesh Patel, CFA, New York (1) 212-438-6410; Thomas J Hartman, CFA, Chicago (1) 312-233-7057
On Oct. 1, 2015, S&P Global Ratings lowered its corporate credit rating on U.S.-based yellow pages publisher Dex

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Media Inc. to 'SD' from 'CCC+'. The ratings were lowered after the issuer failed to make the interest payment due on
Sept. 30, 2015, on its subordinated notes due 2017. We downgraded the entity because we believed it wouldn't be able
to make the interest payment within the stated grace period as the company has a huge and unsustainable debt
burden.
Table 116
Dex Media Inc.--Issuer Credit Rating History
Date To
01-Oct-2015 SD/NM/--
18-Mar-2013 D/--/--
24-Aug-2012 CCC/Developing/--
23-Mar-2012 SD/NM/--
15-Mar-2012 CC/Negative/--
15-May-2009 D/--/--
24-Oct-2008 B+/Negative/--
11-Feb-2008 BB-/Negative/--
03-Oct-2005 BB-/Watch Neg/--
03-Nov-2003 BB-/Negative/--
MMM Holdings Inc.

James Sung, New York (1) 212-438-2115; Deep Banerjee, New York (1) 212-438-5646
• US$30 million first-lien revolver bank loan due Dec. 31, 2017
• US$450 million first-lien term loan B bank loan due 2017
On Oct. 2, 2015, S&P Global Ratings lowered its counterparty credit and secured debt ratings on the leading medicare
advantage insurer, MMM Holdings Inc., to 'D' from 'B-' and removed all ratings from CreditWatch, where we placed
them with developing implications on June 5, 2015. The ratings were lowered following the issuer's inability to make
its quarterly amortization payment on its first-lien term loan for third-quarter 2015. The issuer subsequently entered
into a forbearance agreement with its lenders to negotiate a potential restructuring of the credit agreement effective
until Oct. 30, 2015.

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On Dec. 1, 2015, we raised the counterparty credit and secured debt ratings on MMM to 'B-' from 'D'. The outlook is
negative. The upgrade reflected the amendments made to its credit agreement that resolve all current defaults. As per
the new credit agreement, the company is no longer required to make mandatory quarterly principal amortization
payments reducing the liquidity stress it faced initially by maintaining enough capital at its regulated entities to meet
local regulatory requirements.
Table 117
MMM Holdings Inc.--Issuer Credit Rating History
Date To
02-Oct-2015 D/--/--
American Apparel Inc.

Peter C Deluca, New York (1) 212-438-1739; Mariola Borysiak, New York (1) 212-438-7839
• US$9.86 million 17.00% guaranteed unsecured bank In due April 15, 2021
On Oct. 5, 2015, S&P Global Ratings lowered its corporate credit rating on U.S.-based American Apparel Inc. to 'D'
from 'CCC-'. The ratings were lowered after the issuer announced that it filed a voluntary petition to implement a
negotiated restructuring of its debt obligations under Chapter 11 of the U.S. Bankruptcy Code.
On Oct. 6, the issuer secured approval from the bankruptcy court to the $90 million DIP facility enabling the company
to access roughly $70 million of the facility. The DIP is being provided by the company's existing lender is as per the
company's proposed reorganization plan, viewed to convert to an exit facility. The court approved the disclosure
statements on Nov. 20.
Table 118
American Apparel Inc.--Issuer Credit Rating History
Date To
05-Oct-2015 D/--/--
29-Aug-2014 CCC-/Negative/--
24-Feb-2014 CCC/Developing/--
Affirmative Insurance Holdings Inc.

Tom E Thun, New York (1) 212-438-7255; Polina Chernyak, New York (1) 212-438-7179
On Oct. 14, 2015, S&P Global Ratings considered Affirmative Insurance Holdings Inc. (AFF) as a default after the
entity filed for debt restructuring under Chapter 11 of the U.S. Bankruptcy Code.
On Sept. 25, 2009, we lowered the counterparty credit rating on AFF to 'CCC+' from 'B-'. Subsequently, we withdrew

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our ratings on AFF and its subsidiaries at management's request because they were no longer subject to surveillance
by S&P Global Ratings.
Table 119
Affirmative Insurance Holdings Inc.--Issuer Credit Rating History
Local Currency
Date To
25-Sep-2009 NR/--/--
Nota Bank
Ekaterina Tolstova, Moscow (7) 495-783-41-18; Anastasia Turdyeva, Moscow (7) 495-783-40-91
• RUB2 billion 13.5% senior unsecured notes due April 1, 2016

• RUB1.5 billion 13.5% senior unsecured notes due Oct. 13, 2016
• RUB2 billion 14.5% senior unsecured notes due June 6, 2018
On Oct. 14, 2015, S&P Global Ratings lowered its long-term counterparty credit rating on Russia-based Nota Bank to
'R' (under regulatory supervision) from 'B'. The ratings were lowered after the CBR intervened and introduced a
moratorium on all of Nota Bank's credit obligations. The regulatory risk from the decision by the CBR reflected the
increasing financial stress that the bank has come under in recent months. The bank has failed to meet its financial
obligations stemming from liquidity outflows.
On Nov. 30, 2015, we revised the long-term counterparty credit ratings on Nota Bank to 'D' from 'R'. The ratings were
subsequently withdrawn due to lack of information. The rating action followed CBR's revocation of Nota Bank's
banking license on Nov. 24, 2015. As per the process, the CBR will start settling Nota Bank's obligations to creditors in
accordance with bankruptcy law.
Table 120
Nota Bank--Issuer Credit Rating History
Date To
30-Nov-2015 NR/--/--
30-Nov-2015 D/--/--
14-Oct-2015 R/NM/--
25-Sep-2015 B/Watch Neg/--

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Logan's Roadhouse Inc.

Samantha Stone, New York (1) 212-438-2205; Andy G Sookram, New York (1) 212-438-5024
• US$132.8 million 10.75% second-lien senior secured notes due Oct. 15, 2017
• US$30 million revolving credit facility bank loan due Dec. 6, 2011
On Oct. 20, 2015, S&P Global Ratings lowered its corporate credit rating on U.S.-based restaurant operator Logan's
Roadhouse Inc. to 'SD' from 'CCC'. The rating action was taken after the issuer completed a partial bond exchange of
$355 million senior secured notes for two newly issued bonds. As per our criteria, we view this exchange as a
distressed transaction and tantamount to default.
On Oct. 29, 2015, we raised the corporate credit rating on Logan's Roadhouse to 'CCC+' from 'SD'. The outlook is
negative. The upgrade followed the review of Logan's capital structure and its liquidity position after the company's
partial bond exchange, which reduces the company's cash interest expense requirement by roughly $18.5 million per
year.
Table 121
Logan's Roadhouse Inc.--Issuer Credit Rating History
Date To
20-Oct-2015 SD/NM/--
21-Nov-2014 B-/Watch Neg/--
11-Apr-2013 B-/Negative/--
07-Jun-2010 B-/Watch Pos/--
01-Nov-2006 B-/Positive/--
EXCO Resources Inc.


• US$600 million revolver bank loan due July 31, 2018
• US$375 million revolver bank loan due July 31, 2018
• US$591 million bank loan due Dec. 31, 2020
• US$300 million second guaranteed senior secured term bank loan due Oct. 26, 2020
• US$291 million second guaranteed senior secured term bank loan due Oct. 26, 2020
On Nov. 3, 2015, S&P Global Ratings lowered its corporate credit rating on U.S.-based oil and gas E&P company
EXCO Resources Inc. to 'SD' from 'CCC+'. The downgrade followed after the issuer entered into an agreement to
repurchase $252 million of aggregate principal amount of notes in exchange for $109 million of senior secured
second-lien loans, at a significant discount to par at 57%. We view this transaction as distressed exchange as the
investors will receive less than what was promised on the original securities.

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On Oct. 29, 2015, we raised the corporate credit rating on EXCO Resources to 'CCC+' from 'SD'. The upgrade
reflected our forward-looking opinion on the company's creditworthiness after the notes repurchases that reduced debt
by approximately $270 million in October.
On Oct. 21, 2015, we lowered the corporate credit rating on EXCO Resources to 'SD' from 'B-'. The downgrade was
taken after the issuer entered into an agreement to exchange a portion of its senior unsecured notes due 2018 and
2022 for a new senior secured term loan at a 49% discount to par. We view the exchange as distressed and equivalent
to default.
Table 122
EXCO Resources Inc.--Issuer Credit Rating History
Date To
03-Nov-2015 SD/NM/--
29-Oct-2015 CCC+/Developing/--
21-Oct-2015 SD/NM/--
07-Oct-2009 BB-/Stable/--
19-Aug-2009 B+/Stable/--
27-Dec-2006 B/Watch Neg/--
14-Oct-2005 B/Developing/--
20-Jan-2005 B+/Watch Neg/--
12-Jan-2004 B+/Stable/--
NYDJ Apparel LLC

Mariola Borysiak, New York (1) 212-438-7839; Peter C Deluca, New York (1) 212-438-1739
• US$150 million term bank loan due Jan. 6, 2020

• US$12.5 million revolver bank loan due Jan. 6, 2019
On Oct. 23, 2015, S&P Global Ratings lowered its corporate credit rating on U.S.-based NYDJ Apparel LLC to 'SD'
from 'B-'. The rating action was taken after NYDJ's announcement that the company amended its $50 million
second-lien note (not rated) to allow the only lender, SLL Inc., to assign all of its obligations under the Credit
Agreement to Crestview Partners, the company's private equity sponsor, in exchange for cash consideration. Following

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the exchange, the $37.5 million of the second-lien note became payable to Crestview, and the remaining $12.5 million
was contributed to the company as a non-cash equity and canceled. Considering the distressed financial condition of
the company, we see this exchange as default.
On Oct. 26, 2015, we raised the corporate credit rating on NYDJ Apparel to 'CCC+' from 'SD'. The upgrade followed
our review of NYDJ's capital structure and its liquidity position after the company's distressed exchange of its $50
million second-lien notes.
Table 123
NYDJ Apparel LLC--Issuer Credit Rating History
Date To
23-Oct-2015 SD/NM/--
Vantage Drilling Co.

• US$800 million notes due May 1, 2022

• US$1.15 billion 7.50% notes due Nov. 1, 2019
• US$100 million 5.50% senior unsecured bonds due July 15, 2043
• US$56.5 million 7.88% senior unsecured bonds due Sept. 1, 2042
On Nov. 3, 2015, S&P Global Ratings lowered its corporate credit rating on U.S.-based offshore drilling company
Vantage Drilling Co. to 'D' from 'CCC'. The downgrade reflected the issuer's failure to make the $40.8 million interest
payment on its 7.5% secured notes due 2019. We view this as a general default and expect the company to default on
all or substantially all of its obligations as they come due.
Table 124
Vantage Drilling Co.--Issuer Credit Rating History
Date To
03-Nov-2015 D/--/--
30-Mar-2012 B-/Positive/--
Hidili Industry International Development Ltd.

Jian Cheng, CFA, Hong Kong (852) 2533-3576; Apple Lo, Hong Kong (852) 2533-3542
• US$400 million 8.625% senior unsecured bonds due Nov. 4, 2015
On Nov. 5, 2015, S&P Global Ratings lowered its long-term corporate credit rating on Cayman Islands-based coking

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coal producer Hidili Industry International Development Ltd. To 'D' from 'CCC-'. The issuer missed the coupon and
principal payments on its outstanding U.S. dollar bond due on Nov. 4, 2015. We believe that the issuer's non-payment
of this debt will extend to most of its other obligations, due to inadequate financial capacity.
Table 125
Hidili Industry International Development Ltd.--Issuer Credit Rating History
Date To
04-Nov-2015 D/--/--
22-Oct-2014 SD/NM/--
18-Sep-2014 CC/Negative/--
23-Jan-2013 B-/Watch Neg/--
Globo PLC
Matthias J Raab, CFA, Frankfurt (49) 69-33-999-122; Panagiotis Paliakoudis, Frankfurt +49 69 33 999 223;
On Nov. 6, 2015, S&P Global Ratings lowered its corporate credit rating on U.K.-based mobile software firm Globo
PLC to 'D' from 'CCC'. The rating action followed Globo's announcement that it received a letter from its main creditor
regarding the occurrence of events of default, and that a court has placed the company into administration
Subsequently, we withdrew the corporate credit rating on Globo. The withdrawal reflected our lack of reliable data and
sufficient information on the company's financial situation.
Earlier, on Oct. 30, 2015, we downgraded Globo to 'CCC' from 'BB-' and placed the rating on CreditWatch with
negative implications. The rating action reflected our view that the confirmed falsification of data and the
misrepresentation of the company's financial situation by Globo's CEO, as well as the resignation of the company's
executive directors, cast doubt over the company's true financial position as well as its operational continuity.
Table 126
Globo PLC--Issuer Credit Rating History
Date To
06-Nov-2015 NR/--/--
06-Nov-2015 D/--/--
30-Oct-2015 CCC/Watch Neg/--

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Affinion Group Holdings Inc.

Khaled Lahlo, New York (1) 212-438-1012; Naveen Sarma, New York (1) 212-438-7833
• US$325 million 13.75% pay-in-kind/toggle notes series A due Sept. 15, 2018
• US$325 million 11.625% notes due Nov. 15, 2015
On Nov. 10, 2015, S&P Global Ratings lowered its corporate credit rating on U.S.-based Affinion Group Holdings Inc.
to 'SD' from 'CC'. The downgrade followed Affinion's announcement that it completed an exchange of approximately
US$247.4 million (or approximately 95%) of the outstanding $260.5 million 13.75%/14.5% PIK toggle notes due 2018
and about $337.3 million (approximately 93.7%) of the $360 million 13.5% senior subordinated notes due 2018, issued
by Affinion and Affinion Investments, respectively. As a result, approximately $13.1 million aggregate principal amount
of the 13.75%/14.5% PIK toggle notes and $22.6 million aggregate principal amount of the 13.5% senior subordinated
notes is outstanding. We view Affinion's distressed debt exchange as tantamount to default.
On Nov. 13, 2015, we raised our corporate credit rating on Affinion to 'CCC+' from 'SD' with a stable outlook after the
company's completion of its recent exchange offer and rights offering, and our subsequent reassessment of the
company's credit risk.
Table 127
Affinion Group Holdings Inc.--Issuer Credit Rating History
Date To
13-Nov-2015 CCC+/Stable/--
10-Nov-2015 SD/NM/--
01-Oct-2015 CC/Negative/--
10-Jun-2014 SD/NM/--
17-Dec-2013 SD/NM/--
20-Aug-2012 B/Watch Neg/--
Essar Steel Algoma Inc.

Jarrett Bilous, Toronto (1) 416-507-2593; Phalguni Adalja, Toronto 1-416-507-3212;
• US$375 million bank loan due Aug. 16, 2019

• US$375 million 9.50% senior-lien notes due Nov. 15, 2019
• US$252 million 14.00% pay-in-kind notes due Nov. 14, 2020

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On Nov. 11, 2015, S&P Global Ratings lowered its long-term corporate credit rating on Canada-based steel producer
Essar Steel Algoma Inc. (ESA) to 'D' from 'CCC-'. Our downgrade of ESA followed the company's filing and receipt of
creditor protection under the CCAA in Canada and its Chapter 15 filing under the U.S. Bankruptcy Code on Nov. 9,
2015. Concurrent with the filing, ESA entered into a $200 million DIP facility, including a $175 million term loan and
US$25 million asset-based loan revolving facility.
Table 128
Essar Steel Algoma Inc.--Issuer Credit Rating History
Date To
11-Nov-2015 D/--/--
08-Oct-2015 CCC-/Negative/--
18-Aug-2014 SD/NM/--
26-Jun-2014 CCC-/Watch Neg/--
26-Sep-2012 CCC+/Developing/--
14-Sep-2012 CCC+/Watch Dev/--
22-Jun-2012 CCC/Watch Dev/--
05-Apr-2012 CCC+/Watch Dev/--
24-Nov-2010 B-/Watch Neg/--
08-Nov-2001 NR/--/--
03-May-2001 D/--/--
23-Apr-2001 D/--/--
17-Oct-1997 B/Positive/--
Millennium Health LLC

Shannan R Murphy, Boston 6175308337; James E Uko, New York (1) 212-438-1587
• US$50 million revolver bank loan due April 16, 2019

• US$1.775 billion term bank loan due April 16, 2021
On Nov. 13, 2015, S&P Global Ratings lowered its corporate credit rating on U.S.-based Millennium Health LLC to 'D'
from 'CC'. The rating action reflected Millennium's announcement that it filed for Chapter 11 bankruptcy protection in
order to effect a prepackaged financial restructuring that will result in a $1.15 billion reduction in the company's debt
and that will result in the company's lenders becoming the new owners of the company.

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Table 129
Millennium Health LLC--Issuer Credit Rating History
Date To
13-Nov-2015 D/--/--
19-Oct-2015 CC/Watch Neg/--
21-Jul-2015 B/Watch Neg/--
28-Mar-2014 B+/Stable/--
China Shanshui Cement Group Ltd.

Jian Cheng, CFA, Hong Kong (852) 2533-3576; Ellen Y Li, Hong Kong (852) 2533-3527;

• US$400 million 8.50% notes May 25, 2016
On Nov. 13, 2015, S&P Global Ratings lowered its long-term corporate credit rating on Hong Kong-based China
Shanshui Cement Group Ltd. to 'D' from 'CC'. We lowered the rating after Shanshui failed to repay its Chinese
renminbi 2 billion onshore super short-term commercial paper due Nov. 12, 2015. In our view, the failure to repay this
debt will trigger a cross-default of the company's other financial obligations, including some onshore bank loans and
outstanding U.S. dollar notes. Shanshui's winding-up petition and an application to the Grand Court of Cayman Islands
to appoint provisional liquidators for restructuring also constitute an event of default under the terms of the company's
outstanding U.S. dollar notes and resulted in an acceleration of payment of the notes.
Table 130
China Shanshui Cement Group Ltd.--Issuer Credit Rating History
Date To
13-Nov-2015 D/--/--
16-Apr-2015 B+/Watch Neg/--
03-Sep-2012 BB/Negative/--
08-May-2011 BB/Stable/--
PJSC - BANK URALSIB

Sergey Voronenko, Moscow (7) 495-783-40-03; Natalia Yalovskaya, London (44) 20-7176-3407
On Nov. 25, 2015, S&P Global Ratings lowered its 'B-' long-term counterparty credit ratings on Russia-based PJSC -
BANK URALSIB to 'SD'. The downgrade followed Bank URALSIB's announcement that on Nov. 16, 2015, it had
canceled all its outstanding subordinated debts, including non-hybrid (under our classification) "old style" loans
without loss-absorption features. We view the executed cancellation of two non-hybrid "old style" subordinated

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bilateral loans of $73.6 million maturing in 2017, and RUB6 billion maturing in 2019, received in 2007 and 2008,
respectively, as equaling nonpayment in full. This is because at the close of the transaction, investors will receive less
than they were promised in the original agreements on the maturity date.
On Dec. 15, 2015, we raised our long-term counterparty credit ratings on BANK URALSIB to 'CCC+ from 'SD'. The
outlook is positive. The upgrade followed Bank URALSIB's cancellation of its subordinated debts.
Table 131
PJSC - BANK URALSIB--Issuer Credit Rating History
Date To
15-Dec-2015 CCC+/Positive/--
25-Nov-2015 SD/NM/--
02-Jul-2015 B/Watch Neg/--
24-Feb-2015 B+/Negative/--
27-Nov-2006 B+/Positive/--
07-Nov-2005 B/Positive/--
24-Mar-2005 B-/Positive/--
02-Sep-2003 B-/Positive/--
02-Sep-2002 CCC+/Positive/--
China Fishery Group Ltd.

Lillian Chiou, Hong Kong (852) 2533-3530; Sophie Lin, Hong Kong (852) 2533-3544
On Nov. 26, 2015, S&P Global Ratings lowered its long-term corporate credit rating on Hong Kong-based China
Fishery Group Ltd. to 'SD' from 'CCC+'. The rating action followed the company's failure to repay a $31 million
principal installment on its $650 million club loan facility due earlier in the month. The missed payment resulted in one
of the lenders filing a petition in the Hong Kong high court to liquidate China Fishery. The court appointed provisional
liquidators and is seeking to wind up the company. We view China Fishery's failure to repay the principal installment
as a default on the club loan. However, the company serviced all interest payments on its guaranteed senior unsecured
bonds to this point.

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Table 132
China Fishery Group Ltd.--Issuer Credit Rating History
Date To
26-Nov-2015 SD/NM/--
19-Oct-2015 CCC+/Watch Neg/--
15-Aug-2014 B/Watch Neg/--
19-Dec-2011 BB-/Negative/--
08-Jan-2008 B+/Positive/--
Swift Energy Co.

Aaron McLean, New York (1) 212-438-7211; Carin Dehne-Kiley, CFA, New York (1) 212-438-1092

• US$225 million 8.875% senior notes due Jan. 15, 2020
• US$500 million first-lien guaranteed senior secured revolving bank loan due Nov. 1, 2017
• US$640 million bank loan due June 30, 2020
On Dec. 2, 2015, S&P Global Ratings lowered its corporate credit and issue-level ratings on U.S.-based oil and gas E&P
company Swift Energy Co. to 'D' from 'CCC'. The ratings reflected Swift Energy Co.'s announcement that the issuer
missed an $8.9 million interest payment on its $250 million 7.125% senior notes due 2017, and our belief that the
company would not make this payment before the grace period ended on Dec. 29, 2015.
Table 133
Swift Energy Co.--Issuer Credit Rating History
Date To
02-Dec-2015 D/--/--
27-Sep-2000 B+/Watch Pos/--

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Table 133
Swift Energy Co.--Issuer Credit Rating
History (cont.)
Date To
11-Nov-1996 B+/Stable/--
Getty Images Inc.

Elton Cerda, New York (1) 212-438-9540; Andy Liu, CFA, Chicago (1) 312-233-7052
• US$150 million revolver bank loan due Oct. 18, 2017

• US$1.9 billion term B bank loan due Oct. 18, 2019
• US$265 million 0.50% convertible debentures due June 9, 2023
• US$550 million senior unsecured loans due Dec. 31, 2020
On Dec. 11, 2015, S&P Global Ratings lowered its corporate credit rating on U.S.-based Getty Images Inc. to 'SD' from
'CC'. The downgrade followed Getty Images' announcement that it completed a debt exchange of $234 million 7%
senior unsecured notes due 2020 for $150 million of new 10.5% first-lien notes due 2020. We view the exchange as
tantamount to a default, based on our criteria, because the debt holders are not receiving the originally promised
value.
On Dec. 16, 2015, we raised our corporate credit rating on Getty Images to 'CCC+' from 'SD'. The rating outlook is
negative. The upgrade reflected Getty Images' completion of its recent exchange offer and our subsequent
reassessment of the company's credit risk.
Table 134
Getty Images Inc.--Issuer Credit Rating History
Date To
11-Dec-2015 SD/NM/--
20-Aug-2012 BB-/Watch Neg/--
25-Feb-2008 BB-/Watch Neg/--
28-Sep-2007 BB/Negative/--
13-Jun-2007 B+/Watch Pos/--
04-Dec-2006 B+/Watch Dev/--
28-Jul-2005 BB/Stable/--

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Table 134
Getty Images Inc.--Issuer Credit Rating
History (cont.)
Date To
Magnum Hunter Resources Corp.

• US$340 million second-lien term bank loan due Oct. 22, 2019
• US$55 million first-lien guaranteed senior secured term bank loan due Dec. 30, 2015
• US$5 million first-lien guaranteed senior secured term bank loan due Dec. 30, 2015
On Dec. 15, 2015, S&P Global Ratings lowered its corporate credit rating on U.S.-based Magnum Hunter Resources
Corp. to 'D' from 'CCC-'. The rating action followed Magnum Hunter's announcement that it filed voluntary petitions
for restructuring under Chapter 11 of the U.S. Bankruptcy Code. Magnum Hunter also announced its entry into a
restructuring support agreement with lenders that hold, in the aggregate, about 75% of the company's debt. The
restructuring support agreement provides for DIP financing in the form of a $200 million senior secured term loan that
will be backstopped by lenders who are parties to the agreement.
Table 135
Magnum Hunter Resources Corp.--Issuer Credit Rating History
Date To
15-Dec-2015 D/--/--
12-May-2015 CCC-/Negative/--
Abengoa S.A.
David Matthews, London (44) 20-7176-3611; Per Karlsson, Stockholm (46) 8-440-5927
• €500 million 8.50% notes due March 31, 2016

• €150 million guaranteed unsecured term bank loan due July 18, 2016
• €400 million 6.25% senior secured notes due Jan. 17, 2019
• €701.45 million guaranteed senior unsecured revolver bank loan due July 20, 2019
• €165 million revolver bank loan due Sept. 23, 2016
• €170 million unsecured bank term loan
• €250 million 6.25% senior unsecured notes due Feb. 3, 2017
• €698.95 million 3.00% term loan A bank loan due July 20, 2019
• €698.95 million 3.00% term loan B bank loan due July 21, 2018

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On Dec. 16, 2015, S&P Global Ratings lowered to 'SD' from 'CCC-' its long-term corporate credit rating on Spanish
engineering and construction company Abengoa S.A. The downgrade reflected Abengoa's failure to pay scheduled
maturities under its €750 million euro-commercial paper program. We view this as a selective default under our
timeliness of payments criteria.
On Dec. 10, 2015, Abengoa issued an announcement through the Companies Announcement Service of the Irish Stock
Exchange that it had not paid amounts due under the program and that Abengoa is undergoing a debt restructuring
process that caused it to temporarily suspend certain financial commitments.
Table 136
Abengoa S.A.--Issuer Credit Rating History
Date To
16-Dec-2015 SD/NM/--
26-Nov-2015 CCC-/Negative/--
19-Mar-2014 B/Positive/--
02-Apr-2013 B/Negative/--
27-Dec-2012 B+/Watch Neg/--
Empresas ICA S.A.B. de C.V.

Fabiola Ortiz, Mexico City (52) 55-5081-4449; Luis Manuel M Martinez, Mexico City (52) 55-5081-4462

• US$500 million 8.90% perpetual senior unsecured notes due Feb. 4, 2021
• US$700 million 8.875% senior notes due May 29, 2024
On Dec. 18, 2015, S&P Global Ratings lowered its global scale rating on Mexico-based Empresas ICA S.A.B. de C.V. to
'D' from 'CC'. The rating action reflected Empresas ICA's decision that it would not make the $31 million interest
payment on its 8.875% senior notes due 2024 prior to the expiration of the grace period on Dec. 29, 2015. The
company also announced that it was working on a restructuring plan and began the process of engaging with its
creditors and other stakeholders.
Table 137
Empresas ICA S.A.B. de C.V.--Issuer Credit Rating History
Date To
18-Dec-2015 D/--/--
02-Dec-2015 CC/Watch Neg/--
19-Mar-2015 B/Stable/--
26-Jan-2011 BB-/Stable/--
15-Jul-2010 BB-/Positive/--

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Table 137
Empresas ICA S.A.B. de C.V.--Issuer Credit Rating
History (cont.)
Date To
22-Aug-2006 BB-/Stable/--
07-Apr-2006 B/Watch Pos/--
22-Jul-2005 B-/Watch Pos/--
13-Feb-2004 CCC/Watch Pos/--
02-Aug-2002 CCC/Watch Neg/--
28-Jul-1998 BB-/Positive/--
26-Aug-1997 BB-/Watch Pos/--
10-Mar-1995 BB-/Negative/--
02-Feb-1995 BB/Stable/--
02-May-1994 BB+/Watch Neg/--
Foreign Economic Industrial Bank (Vneshprombank)

Sergey Voronenko, Moscow (7) 495-783-40-03; Irina Velieva, Moscow (7) 495-783-40-71
• RUB3 billion notes series BO-03 due June 22, 2018

• US$225 million 9.00% notes due Nov. 14, 2016
• RUB1.5 billion 13.5% senior unsecured notes due Dec. 13, 2017
• RUB7 billion notes series BO-06 due March 23, 2020
On Dec. 21, 2015, S&P Global Ratings lowered the long-term counterparty credit rating on Foreign Economic
Industrial Bank (Vneshprombank) to 'R' from 'B+'. The downgrade followed after the CBR introduced temporary
administration for Foreign Economic Industrial Bank (Vneshprombank) for the next six months. The move indicates
the bank's financial stress to meet its debt obligations. CBR has suspended the authority of the bank's shareholders and
managers.
On Jan. 14, 2016, we lowered the long-term counterparty credit rating on Vneshprombank to 'D' from 'R'. The rating
action reflected that the issuer is facing financial stress and is under a payment moratorium. We believe that the bank
won't be able to fulfill the interests of creditors, including its previous missed coupon payments on its senior unsecured
debt series BO-3 maturing June 2018, and have therefore considered it a default.

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Table 138
Foreign Economic Industrial Bank (Vneshprombank)--Issuer Credit Rating History
Date To
14-Jan-2016 D/--/--
21-Dec-2015 R/NM/--
24-Feb-2015 B+/Negative/--
06-Sep-2007 CCC/Stable/--
Arch Coal Inc.

Chiza B Vitta, Dallas (1) 214-765-5864; James E Fielding, New York (1) 212-438-2452
• US$1 billion 7.00% senior notes due June 15, 2019

• US$1 billion 7.25% senior notes due June 15, 2021
• US$350 million 8.00% second-lien notes due Jan. 15, 2019
• US$500 million 7.25% senior notes due Oct. 1, 2020
• US$250 million revolver bank loan due June 14, 2016
On Dec. 22, 2015, S&P Global Ratings lowered the corporate credit rating on U.S.-based coal producer Arch Coal Inc.
to 'SD' from 'CC'. The rating action followed the issuer's decision to exercise the 30-day grace period under its
indenture agreements with holders of its 9.875% senior notes due 2019, 7.00% senior notes due 2019, and 7.25%
senior notes due 2021. This extended the time period the company has to make the approximately $90 million interest
payment due Dec. 15, 2015, without triggering an event of default under the indentures. We consider this as an event
of default as we did not expect the payment would be made within the 30-day grace period permitted under the
indenture agreements.
On Jan. 11, 2016, we lowered our corporate credit rating on Arch Coal to 'D' from 'SD'. The rating action was taken
after the issuer filed voluntary petitions for restructuring under Chapter 11 of the U.S. Bankruptcy Code. The issuer has
entered into an agreement with an ad hoc group of lenders who hold more than 50% of the company's first-lien debt.
As per the agreement, the lenders have agreed to support the restructuring transaction which will eliminate more than
$4.5 billion in debt from Arch's balance sheet.
Table 139
Arch Coal Inc.--Issuer Credit Rating History
Date To
11-Jan-2016 D/--/--
22-Dec-2015 SD/NM/--

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Table 139
Arch Coal Inc.--Issuer Credit Rating
History (cont.)
Date To
02-May-2011 BB-/Watch Dev/--
01-Oct-2009 BB-/Stable/--
09-Mar-2009 BB/Watch Neg/--
17-Jun-2003 BB+/Negative/--
29-May-2003 BB+/Watch Neg/--
23-Apr-2003 BB+/Negative/--
18-Mar-2002 BB+/Stable/--
21-Sep-2001 BB+/Positive/--
04-May-2001 BB/Watch Pos/--
22-Mar-2000 BB/Stable/--
11-Feb-2000 BB+/Watch Neg/--
13-Oct-1998 BB+/Watch Dev/--
Heckler & Koch GmbH

Lucy L Huynh, CFA, London (44) 20-7176-7631; Eve Seiltgens, Frankfurt (49) 69-33-999-124
• €295 million 9.50% bonds due May 15, 2018
On Dec. 22, 2015, S&P Global Ratings lowered its long-term corporate credit rating on German defense contractor
Heckler & Koch GmbH to 'SD' from 'CCC' and its long-term issue rating on the company's senior secured notes to 'D'
from 'CCC-'. On Dec. 17, 2015, during Heckler & Koch's third-quarter results call, the company announced the
repurchase of €45 million of its €295 million senior notes at a discount of about 11%. During the call, management also
stated that it was considering additional repurchases subject to market conditions and sufficient liquidity. We view this
exchange as distressed rather than opportunistic considering that both the rating and below-par bond prices indicate a
realistic possibility of conventional default over the near to medium term.
On Dec. 23, 2015, S&P Global Ratings raised its corporate credit rating on Heckler & Koch to 'CCC' from 'SD'. Heckler
& Koch's repurchase of senior notes due 2018, at below par value, has only resulted in an incremental improvement in
credit metrics, which remain very highly leveraged. The negative outlook reflects the risk of a downgrade within the
next 12 months, as we continue to see a risk of default. Heckler & Koch's business prospects and cash flow generation
remain uncertain, which leaves the group vulnerable to further adverse developments.

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Table 140
Heckler & Koch GmbH--Issuer Credit Rating History
Date To
22-Dec-2015 SD/NM/--
20-Jun-2011 CCC+/Stable/--
03-May-2011 CCC-/Watch Pos/--
Cognor S.A.
Gaetan Michel, Paris 33-1-4420-6726; Tommy J Trask, Dubai (971) 4-372-7151
On Dec. 30, 2015, S&P Global Ratings lowered its long-term corporate credit rating on Polish Steelmaker Cognor S.A.
to 'SD' from 'CC'. The rating action was taken after assessing the outcome of Cognor's tender offer, through a modified
Dutch auction on its senior secured notes. As per the offer, Cognor will repay €6.96 million in aggregate principal
amount of notes, for an amount corresponding to 53.8% of their notional value. As the clearing price at which the
notes will be repurchased is significantly below the corresponding par amount being redeemed, we consider the offer
as distressed exchange and tantamount to default.
Table 141
Cognor S.A.--Issuer Credit Rating History
Date To
30-Dec-2015 SD/NM/--
04-Dec-2015 CC/Negative/--
17-Feb-2014 CCC+/Stable/--
04-Feb-2014 SD/NM/--
Related Research
• The U.S. Corporate Speculative-Grade Default Rate Is Expected To Rise To 3.9% By December 2016, Feb. 11, 2016
• Recovery Study (U.S.): A Tightening Credit Market Signals Headwinds For Post-Default Recoveries, Dec. 17, 2015
Only a rating committee may determine a rating action and this report does not constitute a rating action.

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2015 Annual Global Corporate Default Study and Rating Transitions PDF

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Default, Transition, and Recovery:

2015 Annual Global Corporate Default

Annual Global Trends

Lower Ratings Are Consistent With Higher Default Vulnerability

Speculative-Grade Ratings Now Dominate

Transition Tables And Cumulative Default Rates

Gini Ratios And Lorenz Curves

Appendix I: Methodology And Definitions

Appendix II: Gini Methodology

Appendix III: Defaults In Profile

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Sector One-year Three-year Five-year Seven-year

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Annual Global Trends

Year defaulted Issuer Amount (mil. $)

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Year defaulted Issuer Amount (mil. $)

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Title Insurance Co.).

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Lower Ratings Are Consistent With Higher Default Vulnerability

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Percent of total defaults per time frame

Percent of total defaults per time frame

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Number of Number of Number of

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Number of Number of Number of

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